The Dow’s industrial-era anchors are quietly outpacing the broader market. Over the past year, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) returned 24.37%, and the Dow tracker returned 20.22%. Three “old economy” Dow components have left both benchmarks in the dust, and they share more than just a ticker on the same index.
What unites them:
Hard-asset moats (industrial machinery and dealer networks, a global capital franchise, a national pharmacy and insurance footprint) B2B and cycle sensitivity (construction and power, dealmaking and trading, healthcare utilization and PBM volumes) Dominant market positions with steep scale barriers. Each is also leveraging the AI buildout to drive recent earnings beats. Here is the countdown.
3. CVS Health CVS Health (NYSE: CVS | CVS Price Prediction) shares have advanced 52.1% over the past year to $95.93. The Q1 2026 report delivered adjusted EPS of $2.57 against a $2.21 consensus, a 16.47% beat, on revenue of $100.43 billion. Aetna led the way, with Health Care Benefits adjusted operating income surging 52.6% to $3.04 billion as the medical benefit ratio improved to 84.6%.
Management raised FY26 adjusted EPS guidance to $7.30 to $7.50 and launched Health100, a health tech subsidiary built on Google Cloud AI. Aetna now processes 83% of prior authorizations in real time. The analyst consensus target sits at $103.04. Forward P/E of 13x keeps the valuation modest. Risks include pharmacy reimbursement pressure, drug pricing regulation, and a $5.72 billion goodwill impairment last year that still hangs over the Health Care Delivery unit.
2. Goldman Sachs Goldman Sachs (NYSE: GS) trades at $1,038.68, up 71.4% over the past year. Q4 2025 EPS came in at $14.01 versus an $11.76 estimate, a 19.13% beat, capping a year of four consecutive double-digit earnings beats. Full-year EPS was $51.32 on net income of $17.18 billion, the second-highest annual result on record.
Advisory fees jumped 41% year over year in Q4, Equities financing hit a record $2.13 billion, and AUM reached $3.61 trillion. CEO David Solomon said the firm expects momentum to accelerate in 2026, “activating a flywheel of activity across our entire firm.” The “One GS 3.0” AI productivity push, a 12.5% dividend hike to $4.50, and $12.36 billion in 2025 buybacks underscore the capital-return story. The consensus target of $947.60 is already below the current quote, and ratings skew toward Hold.
The shares may be pricing in much of the M&A revival Goldman’s own outlook flags, with a 15% expected increase in completed U.S. M&A deals in 2026.
1. Caterpillar Caterpillar (NYSE: CAT) is the runaway leader here. Shares trade at $904.28, up 159.1% over the past year and 57.9% year to date. Q1 2026 EPS of $5.54 beat the $4.64 consensus by 19.30%, on revenue of $17.42 billion (+22.2% year on year).
The engine is Power Generation, which grew 41% in Q1 on data center demand for large reciprocating engines and turbines. Jim Cramer recently called CAT “infrastructure money, construction money and data center money,” noting “CAT generators to back up the usual power sources” as a hidden data center opportunity. CEO Joe Creed pointed to a “record backlog” as a foundation for momentum. Buybacks totaled $5.0 billion in Q1 alone. The consensus target is $936.99, with 14 Buy and 11 Hold ratings. Forward P/E of 37x is rich for a cyclical, and Q4 carried $1.03 billion in tariff-driven manufacturing costs. The bull case rests on Vanguard’s projection that AI spending will add another $450 billion in investment in the coming year.
The Common Thread The opening premise is borne out by the data. Each name pairs an irreplaceable physical or franchise moat with cycle-leveraged B2B exposure and a dominant competitive position, then layers an AI-era growth vector on top. Caterpillar sells the picks and shovels of the data center buildout, Goldman is monetizing the dealmaking flywheel while running AI through its own back office, and CVS is wiring Aetna and Caremark into a Google Cloud AI platform. Investors weighing fresh entries should respect the cyclical reversal risk, tariff drag, and healthcare regulatory pressure that still underlie these stories. These old-economy stocks are leading the market.
Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. CVS Health (CVS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
CVS Health is one of 888 individual stocks in the Medical sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CVS Health is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CVS' full-year earnings has moved 4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CVS has returned about 20.9% since the start of the calendar year. In comparison, Medical companies have returned an average of -4.4%. This means that CVS Health is performing better than its sector in terms of year-to-date returns.
Align Technology (ALGN - Free Report) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.4%.
For Align Technology, the consensus EPS estimate for the current year has increased 3.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CVS Health belongs to the Medical Services industry, a group that includes 62 individual stocks and currently sits at #109 in the Zacks Industry Rank. On average, stocks in this group have lost 8.1% this year, meaning that CVS is performing better in terms of year-to-date returns.
Align Technology, however, belongs to the Medical - Dental Supplies industry. Currently, this 13-stock industry is ranked #64. The industry has moved -6.4% so far this year.
CVS Health and Align Technology could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
CVS Health faced intense investor scrutiny in 2024 and 2025 amid efforts to recover from a downturn but has since turned things around. Q1 2026 results showed that the insurance business is exploding for CVS. CVS also posted other positive signs of growth, such as improved retail pharmacy market share.
SAN FRANCISCO, June 11, 2026 (GLOBE NEWSWIRE) -- CVS Health is using Fluency, the Accel-backed enterprise AI deployment platform, to support deployment of autonomous AI agents across parts of its operations. The company is working to move AI initiatives from pilot programs into production environments using Fluency to identify where AI can deliver the greatest operational impact.
The announcement comes as many enterprises continue to struggle to generate returns from multi-million dollar AI investments. Fluency was built to address what its founders describe as the “deployment gap,” the point where promising AI pilots become difficult to scale across real operational environments.
The Deployment Gap Plaguing Enterprise AI
Despite record spending across healthcare, financial services, retail, and other sectors, the majority of enterprise AI programs are failing to deliver expected ROI. According to Fluency’s founders, the issue is rarely the AI models themselves. It is the lack of visibility needed to identify the right deployment opportunities, build mission-critical agents, and prove the business impact after deploying AI.
“Most enterprises today don’t have an AI access problem, they have a prioritization problem,” said Finnlay Morcombe, CEO and Co-founder of Fluency. “Teams are struggling to identify where AI can create the most operational impact across systems, departments, and workflows. Without that strategic clarity, implementation efforts often become fragmented and difficult to scale.”
“Many organizations still struggle to operationalize AI beyond isolated pilots,” added Oliver Farnill, co-founder of Fluency. “The challenge is not just deploying AI tools, but understanding how they fit into existing workflows and how success should be measured once they are live.”
Where AI strategy meets execution
Fluency builds AI automations using the same operational data that identifies automation opportunities in the first place. This approach ensures that deployed AI agents are grounded in the realities of the business, including its systems, processes, and unique operational requirements. By aligning automation with real-world business context, Fluency helps address one of the key challenges behind failed AI deployments: solutions that are not designed to work effectively within the environments they are intended to serve.
How CVS and Other Fortune 500 Companies Are Overcoming It
CVS Health manages one of the largest pharmacy networks in the U.S., handling millions of prescriptions, complex supply chains, and constant insurance coordination.
It operates across large, complex workflows involving pharmacies, insurance coordination, and supply chain systems. Fluency is helping provide visibility into these workflows so AI can be deployed more efficiently across all operational environments.
Key Outcomes:
Automations in production workflows grounded in real work data.Full deployment lifecycle: work visibility, AI deployment, and ROI measurementLive with major enterprise clients including CVS HealthBacked by Accel and built specifically for enterprise AI deployment About Fluency
Fluency sees all work across every team, recommends exactly what to automate, and tracks the results. Working across all tools and teams from day one, creating a unified view of enterprise execution without the need for integrations.
With Fluency, companies measure ROI on AI deployments with precision, proving which initiatives move KPIs and which don't. Leaders can automatically discover and optimize work, identify automation opportunities, and track the impact of AI on business outcomes.
Fluency builds a live work ontology of how an enterprise operates, tying activity directly to revenue, cost, speed, quality, and risk. Fluency is the foundation that makes improvement continuous, automatic, and AI-first.
Media Contact:
Genius PR
Phone number:
Email: [email protected]
Website: https://usefluency.com
LinkedIn: https://www.linkedin.com/company/usefluency/
San Francisco, CA, US
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7cbc277f-4a1a-4a16-bbdf-cf3c46a0f9e4
CVS Health execs discuss how the company is using AI and other technologies to reduce administrative burdens and deliver more proactive care experiences.
CVS Health (CVS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this drugstore chain and pharmacy benefits manager have returned +3.4%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Medical Services industry, which CVS Health falls in, has gained 5.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
CVS Health is expected to post earnings of $1.85 per share for the current quarter, representing a year-over-year change of +2.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The consensus earnings estimate of $7.44 for the current fiscal year indicates a year-over-year change of +10.2%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $8.37 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For CVS Health, the consensus sales estimate for the current quarter of $100.18 billion indicates a year-over-year change of +1.3%. For the current and next fiscal years, $409 billion and $425.13 billion estimates indicate +1.7% and +3.9% changes, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Have you been paying attention to shares of CVS Health (CVS - Free Report) ? Shares have been on the move with the stock up 3.4% over the past month. The stock hit a new 52-week high of $100.55 in the previous session. CVS Health has gained 26.6% since the start of the year compared to the -3.6% move for the Zacks Medical sector and the -6.8% return for the Zacks Medical Services industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, CVS Health is expected to post earnings of $7.44 per share on $409 in revenues. This represents a 10.22% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.37 per share on $425.13 in revenues. This represents a year-over-year change of 12.5% and 3.94%, respectively.
Valuation MetricsThough CVS Health has recently hit a 52-week high, what is next for CVS Health? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.4X. On a trailing cash flow basis, the stock currently trades at 6.7X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 0.98. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health passes the test. Thus, it seems as though CVS Health shares could still be poised for more gains ahead.
How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Labcorp Holdings Inc. (LH - Free Report) . LH has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Labcorp Holdings Inc. beat our consensus estimate by 3.91%, and for the current fiscal year, LH is expected to post earnings of $18.00 per share on revenue of $14.71 billion.
Shares of Labcorp Holdings Inc. have gained 4.4% over the past month, and currently trade at a forward P/E of 14.73X and a P/CF of 10.68X.
The Medical Services industry is in the top 44% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVS and LH, even beyond their own solid fundamental situation.
Key Takeaways STNE qualified with a low P/B profile and a projected 23.6% long-term EPS growth rate.USNA, STRA and NEXA made the screen while posting projected EPS growth of 12.0% to 15.7%.CVS joined the list with integrated health offerings and a projected 13.7% long-term EPS growth rate. When assessing a company’s valuation, investors typically rely on metrics such as the price-to-earnings (P/E) ratio and the price-to-sales (P/S) ratio. The P/E ratio measures how much investors are willing to pay for each dollar of a company’s earnings, while the P/S ratio indicates the value the market assigns to each dollar of revenues generated by the business.
Although P/E and P/S multiples are among the most widely used valuation tools, the price-to-book (P/B) ratio is another useful metric, particularly for identifying potentially undervalued stocks and companies with attractive long-term growth prospects. The P/B ratio compares a company’s market value with its book value, providing insight into how the market values the firm's net assets.
The P/B ratio is calculated as:
P/B Ratio = Market Capitalization ÷ Book Value of Equity
or equivalently,
P/B Ratio = Share Price ÷ Book Value per Share.
This metric can help identify attractively priced stocks with upside potential. Some such stocks are StoneCo (STNE - Free Report) , USANA Health Sciences (USNA - Free Report) , Strategic Education (STRA - Free Report) , Nexa Resources (NEXA - Free Report) and CVS Health Corporation (CVS - Free Report) . Let us understand the concept of book value.
What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Book Value Per Share = (Total Assets – Total Liabilities) ÷ Number of Outstanding Shares
Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
5 Low Price-to-Book StocksHere are five of the 14 stocks that qualified for the screening:
StoneCo provides financial technology solutions. The company offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online and mobile channels. StoneCo is based in Sao Paulo, Brazil.
STNE has a Zacks Rank #2 and a Value Score of A. STNE has a projected 3-5-year EPS growth rate of 23.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
USANA Health Sciences develops and manufactures high-quality nutritional, personal care and weight management products. USANA Health Sciences currently has a Zacks Rank #2 and a Value Score of A. USNA has a projected 3-5-year EPS growth rate of 12.0%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #1. NEXA has a projected 3-5-year EPS growth rate of 15.7%.
Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care.
CVS Health has a Zacks Rank #2 and a Value Score of A. CVS has a projected 3-5-year EPS growth rate of 13.7%.
Key Takeaways Prologis posted Q1 2026 core FFO of $1.50 per share, topping estimates on strong leasing activity.PLD raised its 2026 cash same-store NOI outlook after 66.7M square feet of leases commenced.Prologis started $1.3B in build-to-suit data center projects to expand beyond logistics real estate. Prologis, Inc. (PLD - Free Report) remains a scaled owner of infill logistics facilities that are central to modern distribution networks. Development, disciplined capital recycling and new strategic capital ventures extend the growth runway, while data centers and energy broaden the platform.
Last month, PLD posted first-quarter 2026 core funds from operations (FFO) per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%. Results were supported by robust leasing activity, while net earnings per share rose to $1.05 from 63 cents in the year-ago quarter.
While shares of this Zacks Rank #2 (Buy) REIT have rallied 15.6% over the past six months, outperforming the industry's growth of 7.9%, there is still room for further appreciation.
Image Source: Zacks Investment Research
Factors That Make Prologis Stock a Solid PickHealthy Operating Performance: Prologis’ infill portfolio remains attractive to distribution users because many sites are near major airports, seaports and ground transportation corridors. In first-quarter 2026, 66.7 million square feet of leases commenced across the owned and managed operating and development portfolio, and management described logistics lease signings of about 64 million square feet as a quarterly record.
Retention was 75.8%, and both average and period-end occupancy were 95.3%. Rent capture stayed positive, with net effective rent change of 31.9% and cash rent change of 16.8% on the Prologis share portfolio in the first quarter of 2026. Cash same-store NOI grew 8.8% in the quarter, and management raised its 2026 cash same-store NOI outlook to 6.25%-7%, supporting continued rent roll-up as leases reset.
Acquisitions & Development: Prologis continues to deploy capital through a mix of acquisitions, development and recycling, allowing it to shift spending as market pricing and funding costs change. In first-quarter 2026, Prologis’ share of acquisitions was $268 million at a 4.7% stabilized cap rate, while development starts were $1.78 billion and stabilizations were $1.11 billion at a 7.6% estimated yield and 34.8% estimated margin.
For 2026, management raised its outlook for development starts to $3.50-$4.50 billion and maintained acquisitions at $1.00 to $1.50 billion. Dispositions are still expected at $1.75 to $2.25 billion, which supports funding for new projects while limiting balance sheet strain.
Data Center Diversification: Prologis is expanding beyond traditional logistics real estate by scaling digital infrastructure that can be paired with its existing land positions. In first-quarter 2026, the company started $1.3 billion of build-to-suit data center developments, and management highlighted this activity as a step forward in building the platform. Data center demand is being shaped by cloud adoption and higher computing intensity. Management’s 2026 capital deployment plan includes data centers within development activity, reinforcing its commitment to scale this business line to diversify earnings.
Balance Sheet Strength and ROE: Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2026, this industrial REIT had a total available liquidity of $6.7 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.3%, with a weighted average term of 8.1 years. Debt to adjusted EBITDA was 4.8X. The company’s credit ratings as of were A2 (Outlook Stable) from Moody’s and A (Outlook Stable) from Standard & Poor’s, enabling PLD to borrow at an advantageous rate.
This REIT’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 6.47% compares favorably with the industry’s 2.2%, reflecting that PLD is more efficient in using shareholders’ funds than its peers. Given its balance sheet strength and prudent financial management, the company is well-poised to capitalize on growth opportunities.
Dividend: Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In February 2026, the company’s board hiked its quarterly dividend by 5.9% to $1.07 per share from $1.01 paid earlier, taking the annualized dividend to $4.28 per share. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 11.09%. Given the company’s solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable over the near term. Check Prologis’ dividend history here.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Chatham Lodging Trust REIT (CLDT - Free Report) and American Tower (AMT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.27, which indicates year-over-year growth of 24.5%.
The consensus estimate for AMT’s full-year FFO per share is pinned at $10.95, which calls for a 1.8% increase from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Backing founders at the forefront of a global transformation in maritime and logistics
NEW YORK--(BUSINESS WIRE)--TMV today announced the launch of TMV Logistics, LP, a $200M venture fund dedicated to maritime and logistics innovation and safety. The fund is anchored by strategic commitments from American Bureau of Shipping (ABS), the global leader in classification and technical advisory services and Prologis Ventures, the strategic investment arm of Prologis (NYSE: PLD), the world's leading logistics real estate company. TMV Logistics will back pre-seed through Series A companies rebuilding the core infrastructure of maritime, shipbuilding, ports, and intermodal logistics.
Investing in a Multi-Decade Maritime and Logistics Build Cycle
Across the global maritime industrial base, a generational shift is underway. Policy intent has moved into execution, with governments and industry aligning around the strategic importance of shipbuilding, shipping, and maritime infrastructure. This is catalyzing a new wave of company building with urgency and scale and accelerating rapid, system-wide scaling.
In the United States, federal shipbuilding investment is scaling rapidly, rising from $33.35B in FY2024 to $47.3B in FY2026, with a proposed $65.8B for FY2027. This mirrors a broader global trend, as leading maritime nations commit capital to modernize yards, expand fleets, and strengthen supply chains. International investment remains central, with more than $150B from South Korea and Japan supporting expanded shipbuilding capacity.
At the same time, ports and intermodal logistics networks face growing pressure to increase capacity amid geopolitical disruption, energy volatility, and labor constraints. These dynamics are accelerating adoption of automation, AI, robotics, and alternative energy systems, reshaping how global supply chains operate.
The TMV Maritime and Logistics fund will invest across five core technology themes:
Industrial-grade autonomy and operationally resilient systems Verticalized robotics for real-world deployment Operational AI for decision-making and orchestration Maritime dual-use technologies Energy transition and next-generation fuels Strategic Anchor Partners
“ABS has long believed that the future of maritime safety and performance will be shaped by closer collaboration with innovators at the frontier of technology,” said John McDonald, ABS Chairman and CEO. “Our partnership with TMV Logistics reflects that conviction. By combining ABS’s technical leadership with TMV’s early-stage access and ecosystem reach, we are positioning ourselves at the source of innovation that will define safer, more resilient, and higher-performing global fleets, shipyards, and maritime infrastructure.”
American Bureau of Shipping, founded in 1862, is a global leader providing classification, certification, and technical advisory services for marine and offshore assets, supporting governments and protecting critical infrastructure. With more than 160 years of maritime expertise and a global technical network, ABS brings a front-row seat to the most pressing innovation needs in maritime today.
“With a global footprint across logistics real estate, we see firsthand how constraints at ports and along maritime corridors ripple through the entire supply chain,” said Will O’Donnell, MD, Global Corporate Development; Growth, Prologis Ventures. “Investing in maritime innovation is a natural extension of our work to improve flow, visibility and efficiency from port to warehouse at global scale.”
Prologis, the world’s leading logistics real estate company with over $235 billion in assets under management, brings an unparalleled view of global supply chains from the warehouse floor to the port gate. As both an owner, operator and strategic investor, Prologis is uniquely positioned to support TMV’s efforts to connect its portfolio companies with companies, infrastructure, and pilot opportunities at scale.
Where Operators and Innovators Converge
“We’re in the foothills of a multi-decade rebuild of maritime and industrial infrastructure,” said Marina Hadjipateras, Co-Founder and a Managing Partner at TMV. “What’s changed is not just capital, but who is deploying it. Operators are no longer sitting on the sidelines– they’re using venture as a strategic tool. TMV Logistics sits at that intersection, backing the companies building the next layer of coordination, resilience, and capability across the global system.”
In addition to capital, anchor partners will serve as active strategic collaborators supporting diligence, shaping product development, and acting as potential customers, design partners, and ecosystem integrators for TMV’s portfolio companies.
"Maritime AI is a once-in-a-generation opportunity, and the companies being built right now will set the standards for the next fifty years. TMV brings over two decades of go-to-market expertise, deep commercial relationships, and a founder mentality that treats business development as a core competency. That combination is what turns early-stage bets into category leaders." said Soraya Darabi, Co-Founder and a Managing Partner, TMV.
Industry Advisors
TMV Logistics is supported by an advisory network spanning maritime infrastructure, ports, intermodal logistics, automation, and dual-use innovation. Advisors include senior leaders from ConGlobal, Fenix Marine Services, Maersk, Flexport, Dorian LPG, and the defense innovation ecosystem. Together, they provide TMV Logistics with deep operational expertise, strategic industry relationships, and real-time market insight that strengthen the fund’s sourcing, diligence, and portfolio support across the global maritime and logistics value chain.
ABOUT TMV
TMV is an early-stage venture firm investing in founders remaking the industries that move the world. Since its inception in 2016, TMV’s portfolio has grown to more than 50 investments across AI, healthcare, maritime, and logistics. With $230 million in assets under management, TMV’s portfolio companies have collectively raised more than $1 billion in follow-on funding. Visit www.tmv.vc to learn more.
ABOUT ABS
ABS is a global leader in classification and technical advisory services, dedicated to delivering a safer and cleaner future for the marine and offshore industries, serving governments and protecting critical infrastructure. For more than 160 years, ABS has set the standard for safety and excellence, continually innovating in fields such as digitalization, cybersecurity, clean technology, and artificial intelligence.
ABOUT PROLOGIS VENTURES
Prologis Ventures is the strategic investment arm of Prologis, the world’s leading logistics real estate company. With over $300M invested across 50+ portfolio companies, Prologis Ventures is at the forefront of supply chain innovation, backing disruptive technologies that address their customers' most pressing challenges. To learn more visit www.prologis.com/about/prologis-ventures.
, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced that Dan Letter, chief executive officer, and Tim Arndt, chief financial officer, will present at REITWeek 2026 on Tuesday, June 2, at 11:00 a.m. ET.
Prologis' presentation will be broadcast live via audio webcast and an audio replay will be available thereafter. The live broadcast and replay can be accessed on https://ir.prologis.com/events-presentations.
About Prologis
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one – not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.
Forward-Looking Statements
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
, /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL14), a leading owner and operator of Class-A industrial real estate in Mexico, has acquired a building from Prologis located in the Toluca submarket of Greater Mexico City, for an aggregate purchase price of US$94 million, including closing costs. The building is 100% leased in dollars to a global e-commerce player.
"This acquisition reflects our continued focus on expanding our portfolio with high-quality assets in Mexico's most strategic and dynamic markets," said Héctor Ibarzabal, CEO, FIBRA Prologis. "By adding this facility, we are strengthening our presence in key logistics hubs."
ABOUT FIBRA PROLOGIS
FIBRA Prologis is a leading owner and operator of Class-A industrial real estate in Mexico. As of March 31, 2026, the company's portfolio comprised 516 Investment Properties, totaling 86.9 million square feet (8.1 million square meters). This includes 350 logistics and manufacturing facilities across 6 industrial core markets in Mexico, comprising 65.8 million square feet (6.1 million square meters) of Gross Leasing Area (GLA) and 166 buildings with 21.1 million square feet (1.9 million square meters) of non-strategic assets in other markets.
FORWARD-LOOKING STATEMENTS
The statements in this release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which FIBRA Prologis operates, management's beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact FIBRA Prologis financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, acquisition activity, development activity, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust ("FIBRA") status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments, (viii) environmental uncertainties, including risks of natural disasters, (ix) risks related to the coronavirus pandemic, and (x) those additional factors discussed in reports filed with the "Comisión Nacional Bancaria y de Valores" and the Mexican Stock Exchange by FIBRA Prologis under the heading "Risk Factors." FIBRA Prologis undertakes no duty to update any forward-looking statements appearing in this release.
Non-Solicitation - Any securities discussed herein or in the accompanying presentations, if any, have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. Any such announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein or in the presentations, if and as applicable.
Key Takeaways Prologis is seen as the better REIT pick now, offering a stronger blend of quality and growth.Prologis had record leasing: 64M sq ft signed; cash same-store NOI 8.8%; occupancy 95.3%.Realty Income: 98.9% occupancy, 103.4% rent recapture, and 6.6% YoY AFFO/share growth in Q1. Realty Income (O - Free Report) and Prologis (PLD - Free Report) are two of the best-known REITs, but they give investors very different kinds of real estate exposure. Realty Income, often called “The Monthly Dividend Company,” is built around long-term net leases, a large retail-heavy portfolio and a steady monthly payout. Prologis, on the other hand, is the global leader in logistics real estate, with warehouses, distribution assets, data center opportunities and energy-related growth tied to modern supply chains.
This is a useful comparison for investors looking beyond the broad REIT label. Realty Income offers stability, diversification and income dependability. Prologis offers exposure to logistics demand, digital infrastructure and a development platform that can create value over time.
Both have scale, strong tenant relationships and access to capital, but their growth profiles are not the same. The better choice depends on whether an investor wants a steadier income story or a stronger long-term growth engine.
The Case for Realty IncomeRealty Income’s biggest strength is still its dependable business model. The company owned or held interests in more than 15,500 properties at the end of the first quarter of 2026, leased to 1,786 clients across 92 industries. This level of diversification helps reduce reliance on any single tenant, property type or market. Compared with Prologis, which is more focused on logistics real estate, Realty Income gives investors broader exposure across retail, industrial, gaming and other net lease categories.
The company also continues to deliver steady operating performance. In the first quarter, Realty Income reported 98.9% portfolio occupancy, a rent recapture rate of 103.4% on re-leased properties and 6.6% year-over-year AFFO per share growth. Those are solid numbers for a large, mature REIT. Realty Income also raised its 2026 AFFO per share guidance and increased its full-year investment volume outlook to $9.5 billion, showing that management still sees room to deploy capital at scale.
Another positive is Realty Income’s dividend record. The company has declared hundreds of consecutive monthly dividends and has increased its dividend for more than 31 straight years as a public company. For investors who mainly want predictable income, that consistency is hard to ignore. Prologis also pays a dividend, but Realty Income’s identity is more clearly built around monthly cash returns and a long history of dividend growth.
However, Realty Income’s growth profile is not as exciting as Prologis’. Same-store rental revenues increased only 0.8% in the first quarter, and its 2026 AFFO per share growth guidance points to a low-single-digit growth rate. Its private capital partnerships with Apollo and GIC, along with its U.S. Core Plus fund, could help over time, but the business still looks more like a steady income compounder than a faster-growing real estate platform.
The Case for PrologisPrologis stands out because it sits at the center of global logistics. The company owns or has investments in properties and development projects expected to total about 1.3 billion square feet across 20 countries, serving roughly 6,500 customers. Compared with Realty Income’s more diversified net lease model, Prologis has a sharper focus on warehouses and supply chain infrastructure, which remain critical to e-commerce, retail distribution, manufacturing and business-to-business activity.
Its first-quarter results showed that demand is still healthy. Prologis delivered record leasing, with 64 million square feet of lease signings and 66.7 million square feet of leases commenced across its operating and development portfolio. Occupancy was 95.3%, retention was 75.8%, and cash same-store NOI grew 8.8%. These figures compare well with Realty Income’s steadier but slower same-store rental revenue growth, and they point to stronger internal growth from Prologis’ existing portfolio.
Prologis also has a stronger development engine. During the quarter, it started $1.78 billion of development on its share, with an estimated value creation of $571 million from development starts. Its build-to-suit activity is especially important because it shows that large customers are still willing to commit to new space. Its broader platform includes logistics assets, data centers and energy. The data center angle is especially important, as Prologis has been advancing power-secured sites and build-to-suit projects tied to major technology demand. Realty Income is also deploying capital at scale, but Prologis has a more visible path to creating value through development.
The balance sheet and capital platform add another layer to the case. Realty Income has a solid balance sheet, supported by $3.9 billion of available liquidity, net debt to adjusted EBITDAre of 5.2X and strong investment-grade ratings. Prologis looks even stronger, with $6.7 billion of liquidity, debt-to-adjusted EBITDA of 4.8X, a 3.3% weighted average interest rate and an 8.1-year debt term. Both are well-positioned, but PLD has better financial flexibility.
Prologis also expanded its Strategic Capital platform through partnerships with GIC and La Caisse. Like Realty Income, Prologis is using private capital to grow, but PLD’s platform appears more directly tied to high-growth logistics, data center and energy opportunities.
How Do Estimates Compare for Realty Income & Prologis?The Zacks Consensus Estimate for Realty Income’s 2026 and 2027 sales implies year-over-year growth of 8.55% and 7.33%, respectively. The consensus mark for 2026 and 2027 funds from operations (FFO) per share suggests a year-over-year increase of 3.74% and 3.28%, respectively. Over the past month, estimates for O’s 2026 and 2027 FFO per share have been tweaked southward.
For Realty Income:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Prologis’ 2026 and 2027 sales calls for year-over-year growth of 4.92% and 3.39%, respectively. The consensus estimates for both 2026 and 2027 FFO per share have been revised marginally upward over the past seven days. The figures suggest a year-over-year increase of 6.37% and 7.28%, respectively.
For Prologis:
Image Source: Zacks Investment Research
Price Performance and Valuation of O & PLDSo far in the year, Realty Income shares have risen 9.4%, while Prologis stock has rallied 14.1%. In comparison, the S&P 500 composite has advanced 10.4% in the same time frame.
Image Source: Zacks Investment Research
O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 13.70X, which is above its three-year median.
Meanwhile, PLD is presently trading at a forward 12-month price-to-FFO of 22.94X, which is also above its three-year median of 20.81X. Both O and PLD carry a Value Score of D.
Image Source: Zacks Investment Research
Conclusion: PLD Has the EdgeRealty Income remains a strong REIT for investors who value monthly income, high occupancy and a diversified net lease portfolio. It is steady, proven and built for dependable cash flow. However, Prologis looks like the better stock to consider now for investors seeking a stronger blend of quality and growth. Its record leasing, stronger same-store NOI growth, global logistics footprint, development pipeline, and expanding data center and energy opportunities give it more ways to compound over time. Realty Income is the steadier income play, but Prologis has the more compelling long-term growth setup. Estimate revisions also suggest that Prologis stands out as the better REIT pick currently.
While PLD carries a Zacks Rank #2 (Buy), O has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Prologis (PLD - Free Report) closed at $143.47 in the latest trading session, marking a -1.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 0.21%.
Coming into today, shares of the industrial real estate developer had gained 2.55% in the past month. In that same time, the Finance sector gained 1.12%, while the S&P 500 gained 6.04%.
The investment community will be paying close attention to the earnings performance of Prologis in its upcoming release. The company is predicted to post an EPS of $1.54, indicating a 5.48% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 5.17% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.18 per share and revenue of $8.56 billion, indicating changes of +6.37% and +4.92%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Prologis. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. As of now, Prologis holds a Zacks Rank of #2 (Buy).
In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 23.58. Its industry sports an average Forward P/E of 13.05, so one might conclude that Prologis is trading at a premium comparatively.
It's also important to note that PLD currently trades at a PEG ratio of 3.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.48 as trading concluded yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
The First Trust S&P REIT Index Fund (NYSEARCA:FRI) gives investors exposure to American commercial real estate cash flow without picking between malls, warehouses, and senior living towers. Because REITs must distribute at least 90% of taxable income, FRI’s payout rises and falls with rent collected by underlying companies. The question for income investors is whether those rent rolls, concentrated in a handful of large names, can sustain payouts in a 4.4% 10-year Treasury world where refinancing rates sit in the 86th percentile of the past year.
How the rent flows into your account FRI is a plain pass-through vehicle with no options overlay, leverage, or synthetic credit reach. Its distribution equals whatever REIT holdings pay, net of a small expense drag. Dividend safety collapses into one question: are payouts from top constituents covered by real cash flow, and can those balance sheets absorb the current refinancing curve, which now prices 10-year money near 4.5% and 30-year money near 5%? Coverage and leverage drive the verdict.
The six names that carry the distribution Welltower (NYSE:WELL | WELL Price Prediction) is the heaviest weight at roughly $152 billion. Q1 normalized FFO of $1.47 per share against a $0.74 quarterly dividend yields roughly 2x coverage, and management declared its 220th consecutive quarterly payment while raising 2026 FFO guidance to $6.21 to $6.35. Senior management bought shares in February under long-term plans, 33 acquisitions against 2 disposals. This dividend carries minimal risk.
Prologis (NYSE:PLD) covers its $1.07 quarterly dividend with $1.50 Q1 Core FFO, debt-to-EBITDA improved to 4.8x from 5.3x, and a 5.6GW data center power pipeline that monetizes the same land base twice. Simon Property Group (NYSE:SPG) raised its quarterly payout 7% to $2.25, with Real Estate FFO of $3.17 per share and mall occupancy at 96%. Digital Realty Trust (NYSE:DLR) generated $2.04 Core FFO against a $4.88 annual dividend, with the largest hyperscale AI inference lease ever signed behind the guide raise. Coverage is comfortable across all three.
The two names worth scrutinizing are the leveraged ones. Realty Income yields 5.2% and trades at a forward earnings multiple of 39, but the income story rests on AFFO of $1.13 per share covering an annualized $3.25 dividend, roughly 1.4x. Net debt to EBITDA of 5.2x, interest coverage of 1.47x, and $471 million in 2025 impairments mean cushion is real but thin. The monthly cadence holds at 670 consecutive payments, but a rerun of 2022’s rate shock would compress the spread between new investments and borrowing costs that fund the raises.
Iron Mountain is the structural outlier. AFFO covers the $0.86 quarterly dividend at about 1.68x, and data center revenue grew 47%. The balance sheet carries negative stockholders equity of $938 million, $17.1 billion in debt, and interest expense up 15% year over year. CEO William Meaney sold over 256,000 shares on March 1 alone at $108. The dividend is covered today; refinancing math is the variable.
Price versus payout Total return has done the heavy lifting. Welltower is up 18% year to date, Digital Realty up 27%, and Iron Mountain up 53%. Only Realty Income lagged the cohort with a 1.5% one-month decline. Investors are not collecting yield from a sinking NAV, which matters because FRI’s income story dies when capital losses overwhelm the distribution.
The verdict FRI’s distribution looks safe in 2026. All six largest constituents raised full-year guidance, each covers its dividend with FFO or AFFO, and the Fed’s 75 basis points of cuts since September 2025 have eased refinancing pressure. The real risk lives at the tail: Realty Income’s leverage spread and Iron Mountain’s negative equity make the back end of the index more rate-sensitive than the headline yield suggests. For investors focused on diversified REIT income, FRI spreads single-name balance sheet risk across the cohort; investors more focused on dividend growth quality will find that concentration sits in Welltower, Prologis, and Simon.
On June 02, 2026, we present a DCF analysis for Prologis Inc PLD , a leading logistics real estate investment trust. The company has experienced a price performance of +32.5% over the past year, despite a recent decline of -4.7% in the past week. Here are some key points to consider:
DCF Earnings-based intrinsic value of $68.98 vs current price of $139.02 (margin of safety: -101.5%) DCF FCF-based intrinsic value of $89.98 vs current price (second opinion: -54.5% margin of safety) GF Score™ of 91/100 indicates strong reliability of the DCF inputs What Is PLD Worth? DCF Earnings-Based Model The DCF earnings-based model for Prologis Inc estimates the intrinsic value of the stock using a two-stage growth model. In the first stage, we project earnings growth for the next ten years, followed by a terminal growth phase. The assumptions used in this model are outlined in the table below:
Parameter Value Current EPS (TTM, excl. non-recurring) $2.65 10-Year Growth Rate 17.3% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first ten years, we expect the EPS to grow at a rate of 17.3% per year, which is then discounted at a rate of 11%. The calculated value for this growth stage is $36.30 per share. After this growth phase, we apply a terminal growth rate of 4% for the next ten years, also discounted at 11%, resulting in a terminal stage value of $32.68 per share. The summary of these calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.3%, discounted at 11% $36.30 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $32.68 Intrinsic Value Growth + Terminal $68.98 With the current price standing at $139.02, the intrinsic value of $68.98 indicates that the stock is significantly overvalued, with a margin of safety of -101.5%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the PLD DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also consider the free cash flow (FCF) DCF model. The FCF-based intrinsic value for Prologis Inc is calculated at $89.98 per share. When comparing this value with the earnings-based intrinsic value of $68.98, we find that both models suggest the stock is overvalued, albeit to different extents. The FCF model indicates a margin of safety of -54.5%, which is classified as modestly overvalued.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Prologis Inc is calculated at $132.36, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When we analyze the three valuation models—DCF earnings, DCF FCF, and GF Value™—we see that they all indicate the stock is overvalued. For more information, visit the GF Value™ page.
What Does PLD's GF Score™ Tell Us? The GF Score™ ranks stocks on a scale from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Higher GF Score™ values are associated with better long-term returns, as evidenced by backtesting from 2006 to 2021. The GF Score™ for Prologis Inc is 91/100, indicating a strong investment profile. Below is a summary of the GF Score™ metrics:
Metric Rating GF Score™ 91/100 Financial Strength 5/10 Profitability 8/10 Growth 10/10 Valuation 7/10 Momentum 8/10 With a predictability rank of 1/5 stars, it is essential to note that higher predictability ratings lead to more reliable DCF estimates. For additional insights, visit the PLD stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Prologis Inc's 1/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in our calculations is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—all indicate that Prologis Inc is overvalued at its current price of $139.02. The earnings-based intrinsic value of $68.98 and the FCF-based intrinsic value of $89.98 suggest a significant disparity from the market price. Therefore, investors should exercise caution. For the full DCF analysis, visit the PLD DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is PLD's intrinsic value based on DCF?
[Answer: earnings-based $68.98, FCF-based $89.98]
Is PLD overvalued or undervalued?
[Answer using DCF + GF Value™ consensus]
How reliable is the DCF model for PLD?
[Answer using predictability rank 1/5]
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Prologis (PLD - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Prologis is a member of our Finance group, which includes 831 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Prologis is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PLD's full-year earnings has moved 0.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, PLD has moved about 10% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 0.9% on average. As we can see, Prologis is performing better than its sector in the calendar year.
Another Finance stock, which has outperformed the sector so far this year, is Acadia Realty Trust (AKR - Free Report) . The stock has returned 6.7% year-to-date.
The consensus estimate for Acadia Realty Trust's current year EPS has increased 0.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Prologis is a member of the REIT and Equity Trust - Other industry, which includes 90 individual companies and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 9.1% so far this year, so PLD is performing better in this area.
Acadia Realty Trust, however, belongs to the REIT and Equity Trust - Retail industry. Currently, this 19-stock industry is ranked #107. The industry has moved +17.2% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Prologis and Acadia Realty Trust as they could maintain their solid performance.
Prologis (PLD - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Prologis basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Prologis, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for PrologisFor the fiscal year ending December 2026, this industrial real estate developer is expected to earn $6.18 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Prologis. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Prologis to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Prologis (PLD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Prologis currently has an average brokerage recommendation (ABR) of 1.78, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.78 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 14 are Strong Buy, representing 60.9% of all recommendations.
Brokerage Recommendation Trends for PLD
Check price target & stock forecast for Prologis here>>>
The ABR suggests buying Prologis, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is PLD a Good Investment?Looking at the earnings estimate revisions for Prologis, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $6.18.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Prologis. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Prologis may serve as a useful guide for investors.
, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) will host a webcast and conference call with senior management to discuss its second quarter results, current market conditions and future outlook on Thursday, July 16, 2026, at 9:00 a.m. PT/12:00 p.m. ET.
To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.
A telephonic replay will be available July 16 - July 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13757425. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."
About Prologis
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.
Forward-Looking Statements
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
In the latest close session, Prologis (PLD - Free Report) was up +1.39% at $143.79. This move outpaced the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.
Heading into today, shares of the industrial real estate developer had lost 0.76% over the past month, lagging the Finance sector's gain of 0.2% and the S&P 500's gain of 4.59%.
Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.54, marking a 5.48% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.13 billion, indicating a 5.17% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.18 per share and a revenue of $8.56 billion, signifying shifts of +6.37% and +4.92%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. At present, Prologis boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Prologis is presently being traded at a Forward P/E ratio of 22.96. This expresses a premium compared to the average Forward P/E of 12.52 of its industry.
One should further note that PLD currently holds a PEG ratio of 3.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.51.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The Columbia Research Enhanced Real Estate ETF (NYSEARCA:CRED) pays a 3.64% distribution funded by the dividends of its underlying REITs, and that yield is the entire reason most income investors are looking at it. CRED is a small, rules-based fund that has paid quarterly since its April 28, 2023 inception, and the question worth answering is whether the income stream behind that 3.6% number is actually durable.
How CRED Generates Its Distribution CRED is a passive ETF that tracks the FTSE NAREIT All Equity REITs Index methodology after screening out the bottom performers, which leaves it concentrated in the largest, highest-quality U.S. REITs. The fund’s distribution is simply the pass-through of dividends paid by its holdings, minus the 0.33% expense ratio. There are no options premiums, no leverage, and no return-of-capital gimmicks. If the underlying REITs keep paying, CRED keeps paying.
That means dividend safety here is really a question about four or five companies. The top weights are Prologis at 12%, Equinix at 10%, Simon Property Group at 8%, American Tower at 8%, and Digital Realty at 6%. Together they drive roughly 45% of CRED’s income.
What the Top Holdings Are Actually Paying With Prologis (NYSE:PLD | PLD Price Prediction) is the cleanest piece of the portfolio. Q1 2026 Core FFO came in at $1.50 per share against a $1.07 dividend, a payout ratio near 70%. Management raised full-year guidance to $6.07 to $6.23, leverage improved to 4.8x debt-to-EBITDA, and same-store NOI grew 9%. The dividend has risen every year from $0.48 quarterly in 2018 to $1.07 today. This is as safe as REIT income gets.
Equinix is the wrinkle. The data center REIT just raised its dividend 10% to $5.16 quarterly, its 11th straight year of growth, and 2026 AFFO per share guidance of $41.93 to $42.74 covers the roughly $20.64 annualized payout almost twice over. Yet free cash flow was negative $2.57 billion in 2025 because Equinix is spending more than $4 billion a year building AI-driven capacity, and total debt climbed to $21.4 billion from $17.6 billion. AFFO covers the dividend; the growth is being funded with capital markets access. If credit conditions tighten meaningfully, that calculus changes.
American Tower raised its dividend to $1.79 in Q1, with 2026 AFFO guidance of $10.90 to $11.07 per share against an annualized $7.16 payout, a roughly two-thirds payout ratio. 4.9x net leverage leaves modest cushion at current rates, but Q1 free cash flow of $941 million easily funds the distribution.
Simon Property Group just lifted its dividend 7% to $2.25, with 2026 Real Estate FFO guidance of $13.10 to $13.25. Occupancy is 96% and tenant sales hit $819 per square foot. The retail-tenant risk is real in a downturn, but coverage today is comfortable at a 68% payout.
Top Holdings at a Glance Prologis — industrial/logistics REIT with the strongest coverage in the portfolio. Equinix — data center REIT; AFFO covers dividend but capex is heavy. American Tower — cell towers plus data centers; two-thirds AFFO payout. Simon Property Group — mall/retail REIT; comfortable coverage with cyclical risk. Digital Realty — data center REIT rounding out the top weights. Total Return Reality Check A 3.6% yield does not matter if NAV erodes. CRED has held up: shares are up 12% year-to-date and total return since inception is about 33%. The 10-year Treasury near 4.5% is the main pressure point, since higher rates compress REIT valuations and raise refinancing costs.
The Verdict CRED’s distribution is safe in the sense that matters: every major holding generates FFO or AFFO that comfortably covers its dividend, and most are still raising payouts. The structural caveat is that CRED’s $3.38 million in AUM is extremely small, which raises closure risk independent of dividend safety. Income investors who want the same exposure with deeper liquidity should look at Vanguard Real Estate ETF (NYSEARCA:VNQ), which holds many of the same names at a lower expense ratio. CRED’s income is durable. The fund itself is the smaller question.
Key Takeaways Prologis gets the edge over Federal Realty for scale, resilience and broader growth potential.Prologis is expanding beyond logistics with data centers and a 5.6-gigawatt power pipeline.Federal Realty shows strong leasing and 58 years of dividend hikes, but has a narrower runway. Prologis (PLD - Free Report) and Federal Realty (FRT - Free Report) give investors two very different ways to own real estate. Prologis is tied to logistics, e-commerce, supply chains, data centers and energy infrastructure. Federal Realty banks on open-air retail, mixed-use neighborhoods and high-income consumers.
Both are large, seasoned REITs with strong brands in their markets, and both entered 2026 with better operating momentum than many investors might have expected.
The comparison is useful because each company is leaning on a different long-term need. Prologis benefits when companies need modern distribution space close to customers, and it is adding new growth lanes around power and digital infrastructure. Federal Realty benefits when retailers want productive locations in affluent, dense trade areas. That makes this less of a simple warehouse-versus-shopping-center debate and more of a question about durability, growth options and execution.
The Case for PrologisPrologis starts with scale, which is very difficult to match. Its portfolio spans about 1.3 billion square feet across 20 countries and serves roughly 6,500 customers. The scale matters because logistics tenants often need a global partner, not just a local landlord. It also gives PLD broader customer insight across supply chains, e-commerce and business-to-business demand.
The latest operating numbers support that advantage. Prologis reported record leasing, with 66.7 million square feet of leases commenced in the quarter and 75.8% retention. Its average occupancy was 95.3% on an owned and managed basis, while cash same-store NOI rose 8.8%. Federal Realty also showed solid leasing, but PLD’s operating base is far larger and tied to the essential movement of goods.
Prologis also has more visible growth channels beyond its core warehouse business. The company is scaling data centers, with major build-to-suit starts, and has a 5.6-gigawatt power pipeline. This gives PLD exposure to cloud computing, artificial intelligence and grid-constrained energy demand, areas that can expand its opportunity set beyond traditional logistics.
The balance sheet adds another reason to favor PLD. The company reported about $6.7 billion of available liquidity, a debt-to-adjusted EBITDA of 4.8 times and a weighted average term of 8.1 years. It also raised its 2026 core FFO outlook and same-store NOI guidance.
Compared with Federal Realty, PLD offers a broader platform, stronger infrastructure angles and more paths to compound growth. The combination gives investors confidence through changing cycles, while FRT remains more concentrated in one property type and consumer channel overall.
The Case for Federal RealtyFederal Realty’s main appeal is the quality and focus of its retail real estate. The company owns 104 properties with 29.0 million commercial square feet, about 3,800 tenants and roughly 2,500 residential units. Its best-known destinations, including Santana Row, Pike & Rose and Assembly Row, are built around dense, higher-income communities where retailers want long-term presence.
The first-quarter results were encouraging. Federal Realty generated core FFO per share growth of 10.6% year over year, signed a first-quarter record 649,078 square feet of comparable retail leases and delivered 13% cash rent growth on those leases. Its 96.1% leased rate shows that retailers still want space in its centers, especially where income levels and traffic are strong.
Federal Realty also stands out for consistency. Its portfolio was 96.1% leased at quarter-end, and the company raised its 2026 core FFO outlook. It has also increased its dividend for 58 straight years, the longest streak in the REIT industry. For investors who like retail real estate, that record speaks to the durability of the platform and management’s long-term discipline.
The drawback is that Federal Realty’s growth runway looks narrower than Prologis’. Retail demand is healthy in its best markets, but the business is still tied to consumer spending, tenant health and redevelopment execution. Occupancy was 93.8%, below PLD’s level, and FRT’s risks include tenant failures, vacancies and higher project costs. PLD has those real estate risks, too, but its demand drivers look broader. This matters when choosing between durable growth options.
How Do Estimates Compare for PLD & FRT?The Zacks Consensus Estimate for Prologis’ 2026 and 2027 sales implies year-over-year growth of 4.92% and 3.39%, respectively. The consensus mark for 2026 and 2027 funds from operations (FFO) per share has been revised higher, suggesting year-over-year growth of 6.37% and 7.28%, respectively.
Estimates for Prologis:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Federal Realty’s 2026 and 2027 sales indicates year-over-year growth of 6.26% and 4.39%, respectively. The consensus mark for 2026 and 2027 FFO per share has been revised upward over the past month, and the figures suggest year-over-year increases of 4.02% and 4.82%, respectively.
Estimates for Federal Realty:
Image Source: Zacks Investment Research
Price Performance & Valuation of PLD & FRTSo far in the quarter, Prologis shares have gained 11.4%, and Federal Realty stock has rallied 17.4%.
Image Source: Zacks Investment Research
PLD is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 23.08X, which is above its one-year median of 20.81X.
FRT is presently trading at a forward 12-month price-to-FFO of 16.25X, which is also above its one-year median of 14.46X.
Image Source: Zacks Investment Research
Conclusion: PLD Has the EdgeFederal Realty is a high-quality REIT with a strong retail portfolio, proven leasing power and an unmatched dividend record. It is not a weak competitor in this face-off. Still, Prologis looks like the better stock to consider. PLD’s logistics platform is much larger, its customer base is more global, and its growth strategy reaches into data centers and energy infrastructure.
PLD also combines strong occupancy, cash same-store NOI growth, liquidity and raised guidance. For investors choosing between the two, Prologis offers the better mix of scale, resilience, execution and future growth potential across cycles, especially as supply chains evolve globally.
Currently, PLD and FRT each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
April 30, 2026 09:30 ET | Source: Aecon Group Inc.
TORONTO, April 30, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon”) announced today that Hamilton LRT Civil & Utilities Alliance has been selected by Metrolinx as the development partner for the Hamilton LRT Civil and Utilities Works project in Ontario. Under the alliance, Metrolinx is the project owner, Aecon is the construction partner responsible for project delivery, and a joint venture between Hatch, Egis and Systra is the design partner.
Hamilton LRT Civil & Utilities Alliance has executed an alliance development phase agreement with Metrolinx to collaboratively negotiate scope, cost, and schedule of various elements of the project. The development phase will be approximately 18 to 24 months and will be followed by the construction implementation phase.
The Hamilton LRT will bring 14 kilometres of modern, reliable and frequent LRT service across Hamilton’s downtown core from McMaster University to Eastgate, with connections to key destinations and institutions along the corridor. The 17-stop LRT line will also feature connections to GO Transit and Hamilton’s HSR bus service.
“Aecon’s experience building some of the most transformative transit projects of this generation, including three modern LRTs in Ontario, will be of great value to this critical project for Hamilton,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “We are harnessing the collective strengths of our civil and utilities teams to self-perform this vital project. The collaborative development phase provides benefits to all stakeholders, and we look forward to working with our client to advance this project that will improve mobility for growing communities.”
Further information about the project is available on the Metrolinx website.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
The information in this press release includes certain forward-looking statements which may constitute forward-looking information under applicable securities laws. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon, including statements regarding the various phases of the project and expectations regarding project timelines, and the anticipated mobility benefits for the communities. Forward-looking statements may in some cases be identified by words such as "may," "will," "expects," "target," "future," "plans," "believes," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions.
In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to, the risk of not being able to meet contractual schedules and other performance requirements, the risks associated with a third party’s failure to perform; the risk of not being able to meet its labour needs at reasonable costs; the risk of not being able to address any supply chain issues which may arise; the risk of the anticipated benefits from the project not being fully realized; and the risk of not being able to complete the collaborative development phase and construction implementation phase as anticipated. These forward-looking statements are based on a variety of factors and assumptions including but not limited to that: none of the risks identified above materialize, there are no unforeseen changes to economic and market conditions, and no significant events occur outside the ordinary course of business. These assumptions are based on information currently available to Aecon, including information obtained from third-party sources. While Aecon believes that such third-party sources are reliable sources of information, Aecon has not independently verified the information. Aecon has not ascertained the validity or accuracy of the underlying economic assumptions contained in such information from third-party sources and hereby disclaims any responsibility or liability whatsoever in respect of any information obtained from third-party sources.
Risk factors are discussed in greater detail in Section 13 - "Risk Factors" in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
PASADENA, Calif., May 6, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative Megacampus™ ecosystems in AAA life science and advanced technology innovation cluster locations, today announced that Joel S.
TORONTO, May 08, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon”) announced today that Chairman John M. Beck will not stand for re-election to Aecon’s Board of Directors at the Annual Meeting of Shareholders on June 1, 2026 (the “AGM”). As part of the transition, Scott Thon, Lead Director, will step into the role of independent Chair of the Board, assuming his re-election to the Board by Shareholders at the AGM.
In recognition of his dedicated service and contributions to Aecon’s success over his 60-year career, the Board will confer upon John the title of “Chairman Emeritus.”
“Serving Aecon throughout my career has been a tremendous point of pride, and helping to shape the company’s evolution has been a true honour,” said John M. Beck, Chairman, Aecon Group Inc. “I thank our shareholders for their trust, Aecon’s talented leadership team for their commitment, and our employees for their collective contributions over the years. I firmly believe that Aecon is stronger than ever before, and I am confident Scott Thon and the Board of Directors will guide Aecon’s strategic growth to deliver lasting value to shareholders in the years to come.”
“John has overseen Aecon’s strategic direction and operations for over six decades, providing exceptional leadership through significant transformation and growth. His vision has delivered some of the most remarkable landmark projects of this generation,” said Scott Thon, Lead Director, Aecon Group Inc. “Throughout his award-winning career, John has established a world-class company with a distinguished reputation as an industry icon. John’s legacy will forever be linked to Aecon’s success. Personally, and on behalf of the entire Board of Directors, I want to thank John for his vast contributions to our customers, employees and shareholders.”
After graduating from McGill University’s Civil Engineering program in 1963, John joined his family’s Prefac Concrete business in Montreal and embarked on a strategy of mergers, acquisitions and organic growth that grew the scale, geographic presence and market diversity of the business across Canada. After acquiring the company’s brand predecessor, Armbro, the company was listed on the Toronto Stock Exchange in 1987. In 2001, Armbro officially changed its name to Aecon, amalgamating several acquired businesses. Mr. Beck has guided Aecon over the years in its evolution as a diverse and multidisciplinary North American company with global expertise – serving as Founder, former Chief Executive Officer and Executive Chairman.
“John is a trailblazer in our industry. His mentorship, counsel and deep expertise have been invaluable to me – and continuing to lead this exceptional company is my distinct privilege,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “On behalf of Aecon’s executive management team, I congratulate John on his extraordinary career as he transitions to Chairman Emeritus. Aecon looks forward to continuing to execute our growth strategy to advance our evolution.”
Mr. Thon joined Aecon’s Board in 2021 and has served as Lead Director since 2024. He has held a number of senior positions in the energy sector over the last 40 years, and is currently an executive officer and director of Berkshire Hathaway Energy.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties as discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Investors in Alexandria Real Estate Equities, Inc. (ARE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 17, 2026 $32.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Alexandria Real Estate Equities shares, but what is the fundamental picture for the company? Currently, Alexandria Real Estate Equities is a Zacks Rank #3 (Hold) in the REIT and Equity Trust – Other industry that ranks in the Top 24% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $1.62 per share to $1.63 in that period.
Given the way analysts feel about Alexandria Real Estate Equities right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that the company will conduct a conference call and audio webcast on Tuesday, August 4, 2026 at 2:00 p.m. Eastern Time (ET), in conjunction with the release of its second quarter 2026 operating and financial results. Alexandria will release its operating and financial results after the market closes on Monday, August 3, 2026.
To participate in this conference call, dial (833) 366-1125 (U.S./Canada) or (412) 902-6738 (international) shortly before 2:00 p.m. ET and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The live audio webcast can be accessed on the company's website at http://investor.are.com/webcasts. A replay of the call will be available from 4:00 p.m. ET on Tuesday, August 4, 2026 through 4:00 p.m. ET on Tuesday, August 11, 2026. To access the replay, dial (855) 669-9658 (U.S./Canada) or (412) 317-0088 (international) and enter access code 5367901.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City. For more information, please visit www.are.com.
It has been about a month since the last earnings report for Alexandria Real Estate Equities (ARE - Free Report) . Shares have added about 20% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Alexandria Real Estate Equities due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Alexandria’s Q1 FFO Meets Estimates, Revenues Top on Tenant CollectionsAlexandria Real Estate Equities reported first-quarter 2026 AFFO per share of $1.73, in line with the Zacks Consensus Estimate. The metric declined 24.8% from $2.30 in the year-ago quarter.
Total revenues came in at $671.0 million, down 11.5% year over year. The top line edged past the Zacks Consensus Estimate, delivering a revenue surprise of 0.35%. Results reflected solid tenant collections and continued leasing activity during the quarter.
Alexandria’s Leasing Volume Stays Active in Q1During the quarter, Alexandria executed 647,356 RSF of leasing, led by 380,687 RSF of renewals and re-leasing. Leasing of previously vacant space totaled 148,734 RSF, while development and redevelopment leasing contributed 117,935 RSF.
Management also highlighted momentum after quarter-end, noting executed leases and/or letters of intent aggregating 276,188 RSF from April 1 through April 27, 2026, tied to the development and redevelopment pipeline. The company added that 72% of first-quarter leasing activity was generated from its existing tenant base.
Alexandria’s Tenant Base Remains a Key DifferentiatorAlexandria continued to emphasize tenant quality and cash-flow visibility. As of March 31, 2026, investment-grade or publicly traded large-cap tenants represented 55% of annual rental revenues, in effect, supporting stability in a choppier demand backdrop for life science real estate.
The company’s lease structure also remained geared toward embedded growth, with 97% of leases containing annual rent escalations. Weighted-average remaining lease term stood at 7.5 years for all tenants and 9.9 years for the top 20 tenants, reinforcing the long-duration nature of its contracted revenues.
Alexandria’s Rental Rates & Occupancy Show Pressure PointsThe company registered a negative rental rate of 15% during the quarter. On a cash basis, the rental rate decreased 15.8%. As of March 31, 2026, occupancy of operating properties was 87.7%, down 3.7% from the prior quarter and 4% from the year-ago quarter. Our estimate for the same was 89.4%.
On a year-over-year basis, same-property NOI decreased 11.9% and 11.7% on a cash basis.
Interest expenses jumped 26.9% year over year to $64.6 million.
Alexandria’s Balance Sheet Actions in FocusAlexandria underscored liquidity and debt-term advantages. As of March 31, 2026, the company reported $4.17 billion of liquidity and a weighted-average remaining debt term of 10 years. It also noted that only 9% of total debt matures through 2028. The net debt and preferred stock to adjusted EBITDA was 6.8X, and the fixed-charge coverage was 3.4X for the first quarter of 2026 on an annualized basis.
The quarter included notable capital markets and liability management activity. In February 2026, the company completed tender offers to repurchase $1.33 billion of debt principal amount, recognizing a $366.4 million gain on early extinguishment of debt. It funded the repurchase largely by issuing $750 million of 5.25% unsecured senior notes due 2036 and incremental commercial paper borrowings, intended to be repaid through planned dispositions and sales of partial interests.
Alexandria’s Capital Recycling Plan and 2026 OutlookA major strategic priority remains capital recycling to fund the business and reduce funding needs. As of April 27, 2026, Alexandria outlined $2.90 billion at the midpoint of its 2026 guidance for dispositions and sales of partial interests, with $151 million completed and pending, $2.181 billion identified and in process, and an additional $568 million projected.
For 2026, Alexandria maintained its updated FFO per share (as adjusted) guidance range of $6.30-$6.50 (midpoint $6.40). The company expects occupancy of operating properties to be between 86.2% and 87.8%. Rental rate changes for lease renewals and re-leasing of space are to be within negative 9% and negative 1%. Same-property NOI performance is projected in the range of negative 10.5%-8.5%.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
VGM ScoresAt this time, Alexandria Real Estate Equities has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Alexandria Real Estate Equities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAlexandria Real Estate Equities belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Crown Castle (CCI - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Crown Castle reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.50 for the same period compares with $1.10 a year ago.
For the current quarter, Crown Castle is expected to post earnings of $1.00 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Crown Castle has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
On May 27, 2026, Alexandria Real Estate Equities Inc ARE shares rose 3.0% today, closing at $49.93. The stock has seen a 52-week range with a high of $88.24 and a low of $39.41, indicating significant volatility over the past year.
GF Value™ verdict: Current price of $49.93 vs GF Value™ of $97.24, indicating a 48.7% upside.GF Score™: 58/100, which is considered average.Most notable signal: Insider activity shows a net purchase of $0.9M in the last 3 months. Is ARE Overvalued or Undervalued? According to the GF Value™, Alexandria Real Estate Equities Inc ARE is currently trading at $49.93, which is significantly below its estimated fair value of $97.24. This represents a margin of safety of 48.7%, suggesting that the stock is undervalued based on intrinsic value metrics. However, it is important to note that the GF Valuation label indicates that this could be a possible value trap, meaning that while there may appear to be an opportunity, risks are associated with investing at this time. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors might find an opportunity in ARE, but they should proceed with caution given the company's current financial strength rating of 4/10 and a profitability rank of 6/10. The potential for recovery exists, but the financial metrics suggest that investors need to be aware of the inherent risks, particularly in light of the stock's past performance, which has seen a decline of 24.3% over the past year.
How Does ARE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 75.7x 55.5x The current P/E ratio of 75.7x is significantly above its 5-year median P/E of 55.5x, indicating that the stock is trading at a premium compared to its historical valuation. This suggests that the P/E analysis disagrees with the GF Value™ verdict, which implies that while ARE may be undervalued in terms of intrinsic value, it is overvalued based on its earnings potential relative to historical performance.
What Does ARE's GF Score™ Tell Us? Metric Rating GF Score™ 58 Financial Strength 4/10 Profitability 6/10 Growth 3/10 Valuation 2/10 Momentum 4/10 The GF Score™ of 58/100 indicates that ARE is positioned in the average category when it comes to long-term return potential. The strongest area is profitability, rated at 6/10, suggesting that the company has some solid profit-generating capabilities. However, the weakest area is valuation, rated at 2/10, which aligns with the concerns raised by its high P/E ratio and the GF Value™ analysis. Overall, the mixed scores highlight the need for careful consideration before making any investment decisions.
What Are Insiders Doing with ARE Stock? Recent insider activity for Alexandria Real Estate Equities Inc shows that insiders bought $1.2 million worth of shares while selling $0.3 million in the last three months, indicating a net purchase of $0.9 million. This pattern of net insider buying could suggest that those with the most intimate knowledge of the company's prospects are optimistic about its future performance, despite the stock's recent struggles. However, potential investors should consider this alongside other financial indicators when assessing the stock's overall health.
What This Means for Investors In summary, Alexandria Real Estate Equities Inc ARE appears undervalued based on its GF Value™ of $97.24 compared to the current price of $49.93. However, the stock's high P/E ratio and average GF Score™ suggest that investors should approach this opportunity with caution, keeping in mind the risk factors indicated by its financial strength and valuation metrics.
For the complete analysis, visit the Alexandria Real Estate Equities Inc ARE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ARE's GF Score™?
ARE has a GF Score™ of 58/100, which is considered average in terms of long-term return potential.
Is ARE overvalued or undervalued?
ARE is currently undervalued according to its GF Value™ of $97.24, compared to its current price of $49.93.
What is ARE's P/E ratio?
ARE's P/E ratio is 75.7x, which is significantly higher than its 5-year median P/E of 55.5x, indicating it is trading at a premium compared to historical valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Value-oriented, high-yield assets can serve as a shelter against potential drawdown risks in the richly priced large-cap growth arena. The trick is to find the highest-yielding opportunities possible without taking on the income reduction and NAV decay risks.
, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that its Board of Directors declared a quarterly cash dividend of $0.72 per common share for the second quarter of 2026. The dividend is payable on July 15, 2026 to stockholders of record on June 30, 2026.
The declared dividend of $0.72 per common share is consistent with that of the preceding quarter and reflects the company's commitment to fortify its already strong balance sheet, enhance financial flexibility and preserve liquidity. In addition to conserving significant capital, the dividend provides a competitive yield on its common stock of 5.8%, based on the closing stock price on May 28, 2026. Additionally, the company's dividend payout ratio (quarterly common stock dividends divided by quarterly funds from operations) remains conservative at 42% for the three months ended March 31, 2026.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. For more information, please visit www.are.com.
This press release includes "forward-looking statements" within the meaning of the federal securities laws. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.
TORONTO, June 01, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Corporation”) announced today that the nominees listed in the Management Information Circular dated April 29, 2026 were elected as Directors of Aecon, to hold office until the close of the next Annual General Meeting of the Corporation or until their successors are appointed.
Scott Thon was re-elected to Aecon’s Board of Directors and appointed independent Board Chair, as John M. Beck did not stand for re-election, and the Board conferred upon Mr. Beck the title of Chairman Emeritus.
“On behalf of my fellow members of the Board and Aecon’s management, we thank John for his strategic direction, exceptional leadership and extensive contributions to Aecon’s clients, employees, and shareholders – shaping Aecon’s evolution with extraordinary vision over his award-winning 60-plus year career,” said Scott Thon, Board Chair, Aecon Group Inc.
Shareholders also adopted all other resolutions submitted for their approval, as disclosed in the Management Information Circular dated April 29, 2026 including the advisory vote on the Corporation’s approach to executive compensation, and the re-appointment of PricewaterhouseCoopers LLP as the auditors of the Corporation to hold office until the close of the next Annual Meeting of the Corporation and that the board of directors be authorized to fix the auditors’ remuneration.
The complete voting results for each item of business are as follows:
Election of Directors
Name of NomineeVotes in Favour% Votes in FavourVotes Against% Votes AgainstScott Thon37,701,79895.3%1,841,7194.7%Susan Wolburgh Jenah38,350,17497.0%1,193,3433.0%Leslie Kass39,231,90999.2%311,6080.8%Stuart Lee37,158,44494.0%2,385,0756.0%Jeffrey Lyash39,419,88799.7%123,6320.3%Rod Phillips37,152,86794.0%2,390,6526.0%Eric Rosenfeld34,346,48386.9%5,197,03413.1%Jean-Louis Servranckx39,492,52299.9%50,9970.1%Deborah S. Stein36,869,10293.2%2,674,4156.8%Scott Stewart39,471,56599.8%71,9540.2%
Advisory Vote on Executive Compensation
Votes in Favour% Votes in FavourVotes Against% Votes Against36,532,42192.4%3,011,0987.6%
Re-Appointment and Remuneration of Auditors
Votes in Favour% Votes in FavourVotes Withheld% Votes Withheld38,240,94196.0%1,590,8984.0%
Dividend
Aecon’s Board of Directors approved its next quarterly dividend of 19.25 cents per common share. The dividend will be paid on July 3, 2026, to shareholders of record as of June 23, 2026. Unless indicated otherwise, all common share dividends paid by Aecon to shareholders are designated as “eligible” dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties as discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
Alexandria Real Estate Equities remains rated Hold as improved policy clarity and a recovering disposition market are offset by new operational headwinds. NIH indirect cost cap removal and better asset sale prospects reduce tail risks, but occupancy and NOI guidance have been revised downward amid weak leasing trends. A significant 2027 lease expiration wall (~$97m annual rent) now threatens to extend FFO pressures beyond Q4 2026, clouding recovery visibility.
TORONTO, June 04, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon”) and Arctic Gateway Group (“AGG”), an Indigenous and community-owned business, announced today that they have signed a Memorandum of Understanding (“MOU”), establishing a collaboration framework to explore strengthening Canada’s northern trade corridor and Arctic sovereignty through infrastructure advancement related to the Port of Churchill in Manitoba.
Under the MOU, Aecon and AGG will collaborate to pursue and develop project opportunities in connection with the development of the Port of Churchill and Hudson Bay Railway – leveraging Aecon’s diverse construction and infrastructure development expertise and AGG’s established Indigenous and economic development leadership in northern Canada. This work will be undertaken with a strong focus on ensuring that all development of the Port of Churchill and Hudson Bay Railway maximizes jobs, training and opportunities for Indigenous and northern people, as well as Indigenous and northern businesses. This focus aligns with Aecon’s broader approach to reconciliation and supports Indigenous participation in infrastructure development through Indigenous and community ownership, as well as AGG’s mandate as an Indigenous and community owned company.
“Aecon is proud to partner with Arctic Gateway Group through this collaboration agreement – bringing Aecon’s multidisciplinary expertise to explore infrastructure solutions that support Indigenous-led development, economic reconciliation, trade diversification, access to new markets and Arctic security,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc.
“The continued development of this project is a nation-building opportunity to transform the Port of Churchill as Canada’s Arctic and Northern gateway, while delivering lasting national and local benefits for generations to come,” said Tim Murphy, Executive Vice President and Chief Strategic Affairs Officer, Aecon Group Inc.
“This partnership with Aecon will help supercharge Arctic Gateway’s infrastructure planning, with proven expertise and advice from a major North American construction company,” said Chris Avery, President & CEO, Arctic Gateway Group. “As AGG works to further modernize the Port of Churchill, with planning for new terminals and year-round operations, as well as building up the Hudson Bay Railway to modern industrial weight standards that seamlessly intertie with Canada’s class 1 rail network, Aecon will be a trusted partner. Working together, we can ensure that all development of AGG’s infrastructure assets creates good jobs and opportunities for Indigenous and northern people, with lasting community benefits.”
The Port of Churchill is Canada’s only deep-water northern seaport with direct access to the Atlantic Ocean and a connection to the continental rail network through the Hudson Bay Railway. The port and railway are operated by AGG, whose ownership group is comprised of 29 First Nations and 12 remote northern Manitoba communities.
Further information about the Port of Churchill project is available on the AGG website and the Government of Canada’s Major Projects Office website.
Further information about Aecon’s Reconciliation Action Plan is available on the Aecon website.
About Arctic Gateway Group
Arctic Gateway Group is a proudly Indigenous and community owned Manitoba company that owns and operates the Port of Churchill, Canada’s only northern seaport serviced by rail, as well as the Hudson Bay Railway, operating from The Pas to Churchill. Together this northern infrastructure forms the nexus of Canada’s Arctic Trade Corridor, providing a reliable and efficient route for Western Canadian resources to access world markets.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
The information in this press release includes certain forward-looking statements which may constitute forward-looking information under applicable securities laws. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon, including statements regarding the potential opportunities to advance reconciliation efforts, the anticipated project opportunities from the collaboration; and the anticipated benefits this project will have on the economy and communities. Forward-looking statements may in some cases be identified by words such as “may,” “will,” “expects,” “target,” “future,” “plans,” “believes,” “anticipates,” “estimates,” “projects,” “intends,” “should” or the negative of these terms, or similar expressions.
In addition to events beyond Aecon’s control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to, the risk of not being able to meet contractual schedules and other performance requirements, the risks associated with a third party’s failure to perform; the risk of not being able to meet its labour needs at reasonable costs; the risk of not being able to address any supply chain issues which may arise; the risk of the anticipated benefits from the project not being fully realized; and the risk of Aecon not being selected or able to pursue projects as anticipated through this MOU. These forward-looking statements are based on a variety of factors and assumptions including but not limited to that: none of the risks identified above materialize, there are no unforeseen changes to economic and market conditions, and no significant events occur outside the ordinary course of business. These assumptions are based on information currently available to Aecon, including information obtained from third-party sources. While Aecon believes that such third-party sources are reliable sources of information, Aecon has not independently verified the information. Aecon has not ascertained the validity or accuracy of the underlying economic assumptions contained in such information from third-party sources and hereby disclaims any responsibility or liability whatsoever in respect of any information obtained from third-party sources.
Risk factors are discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
U.S. equity markets fell for a fifth-straight week— pulling several major benchmarks into correction territory— as the Iran conflict remained locked in a volatile stalemate, keeping energy markets on edge. The fourth week of the Iran conflict delivered little progress toward de-escalation, as Washington maintained strikes on Iranian nuclear sites while Tehran continued retaliatory attacks across the Persian Gulf. The S&P 500 declined 2.1% this week and now sits 8.7% below its late-January record. The Dow and Nasdaq both entered "correction" territory, while the VIX volatility index topped 30.
, /PRNewswire/ -- Extra Space Storage Inc. (the "Company") (NYSE: EXR) announced today it will release financial results for the three months ended March 31, 2026 on Tuesday, April 28, 2026 after the market closes. The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, April 29, 2026 to discuss its financial results. Hosting the call will be Extra Space Storage's CEO, Joe Margolis. Joining him will be Jeff Norman, Executive Vice President and CFO.
During the conference call, company officers will review operating performance, discuss recent events, and conduct a question-and-answer period. The question-and-answer period will be limited to registered financial analysts. All other participants will have listen-only capability.
To Participate in the Conference Call:
A live webcast of the conference call will be available online from the investor relations page of the Company's corporate website at www.extraspace.com. Telephone participants may avoid delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/970879752?pwd=s88EVPAR.
The conference call will also be available on the Company's website under Investor Relations at www.extraspace.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
Conference Call Playback:
A replay of the webcast will be available on the Extra Space Storage Investor Relations website beginning April 29, 2026 at 5:00 p.m. ET, and will remain available for one year after the call.
Full Text of the Earnings Report and Supplemental Data
The full text of the earnings report and supplemental data will be available at the Company's investor relations website immediately following the earnings release to the wire services after the market close on Thursday, April 28, 2026.
About Extra Space Storage Inc.
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2025, the Company owned and/or operated 4,281 self-storage stores in 43 states and Washington, D.C. The Company's stores comprise approximately 2.9 million units and approximately 330.4 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
For more information, please visit www.extraspace.com.
As Dow Jones slides into the “correction territory” and the benchmark S&P 500 index logs its fifth consecutive week of losses, investors are increasingly desperate for a port in the storm.
According to Barclays’ senior analyst Andrew Ferremi, the market has shifted into a new, volatile era where geopolitical tensions, oil price spikes, and AI-driven disruption are “no longer episodic shocks but persistent features of the investment landscape.”
In response, the investment firm has identified four “overweight” rated stocks that offer a blend of defensive stability and attractive dividends to help portfolios weather the 2026 turbulence.
For investors seeking consistent income amidst the chaos, EXR stands out with a rather compelling 5.05% dividend yield – the highest on Barclays’ list.
While the broader market remains jittery over interest rates and real estate volatility, Barclays says the self-storage sector remains historically resilient through economic cycles.
According to analyst Brendan Lynch, this sector’s financials are poised for a “rebound” as supply pressures begin to ease.
Importantly, the NYSE-listed firm is leveraging the very technology causing stress elsewhere: AI.
“The largest players are best positioned to capture demand and leverage tech given large volumes of customer data and strong brand recognition,” Lynch told clients.
His $170 price target indicates potential upside of a whopping 33% in Extra Space Storage shares.
While the banking sector is facing headwinds from private credit redemptions, JPMorgan remains a cornerstone of defensive investing.
Although JPM shares are currently down about 15% versus their YTD high, analyst Jason Goldberg suggests that investors are essentially “getting paid to wait” – thanks to a 2.1% dividend yield.
In his research note, the Barclays analyst cited the bank’s strong balance sheet as a key differentiator during times of macro uncertainty.
Goldberg described the bank as “complete, global, diversified, and at scale”, adding that its massive footprint allows it to offset margin compression through sheer volume growth.
His $391 price target on JPMorgan stock is a bet on its ability to maintain stable earnings regardless of the operating environment.
In consumer staples, Coca-Cola shares remain the gold standard for safety.
While other sectors struggle with the fallout of the Iran conflict and rising oil prices, the beverage giant has managed to gain more than 10% since the start of 2026.
Analyst Lauren Lieberman labels the company “the best example of a truly defensive, high-quality staples business.”
The secret to its success lies in its decades of experience navigating “dynamic macro conditions”, and its inherent agility – whether it’s inflation or supply chain shifts, KO’s brand power provides a unique cushion.
Barclays currently has an $83 price target on KO shares, indicating a 10% upside on top of a 2.78% dividend yield.
Pharmaceutical giant Merck rounds out the list, providing the “safe haven” characteristics that define the healthcare sector during geopolitical unrest.
According to analyst Emily Field, MRK shares are “perfectly positioned” to withstand the current macro uncertainty.
Merck has already demonstrated its strength, rising 12% this year while broader indices crumbled.
Beyond its defensive profile, Merck stock offers a healthy 2.88% dividend yield, which makes it an attractive play for income-focused investors.
Field has a $140 price target on MRK, implying 17% upside from current levels.
As investors rotate out of high-growth tech and into sectors with proven earnings visibility, MRK’s role as a stable, cash-generative leader makes it a primary pick for navigating turbulence in 2026.
Key Takeaways EXR is set to report Q1 results with expected YoY growth in revenue and FFO per share.EXR benefits from strong brand, diversification and resilient self-storage demand trends.EXR faces pricing pressure from high supply and intense market competition. Extra Space Storage (EXR - Free Report) , a leading self-storage real estate investment trust (REIT) in the United States, is set to release its first-quarter 2026 results on April 28, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Salt Lake City, UT-based REIT reported FFO per share of $2.08, surpassing the Zacks Consensus Estimate of $2.03. Results reflected a year-over-year increase in same-store NOI. However, lower occupancy during the quarter was a spoilsport.
Over the trailing four quarters, the company beat the Zacks Consensus Estimate on three occasions and missed in the remainder, with the average surprise being 1.25%. The graph below depicts this surprise history:
Factors to Consider and Projections for EXRIn the first quarter, Extra Space Storage is likely to have gained from its high brand value, geographically diversified portfolio and presence in key cities in the United States. The self-storage asset category is need-based and recession-resilient in nature. The self-storage industry continues to benefit from favorable demographic changes. All these factors cumulatively are likely to have contributed to the company’s top-line growth.
The Zacks Consensus Estimate of $726.7 million for quarterly property rental revenues suggests an increase from the year-ago period’s $704.4 million. The consensus estimate for revenues from tenant reinsurance is pegged at $89.6 million, which jumped from $84.7 million reported in the year-ago period. The consensus mark for management fees and other income for the quarter stands at $33.2 million, up from $30.9 million in the year-ago period.
The Zacks Consensus Estimate of $850.4 million for quarterly revenues suggests a 3.70% increase year over year.
EXR operates in a highly fragmented market in the United States, facing intense competition from numerous operators. This competitive environment is likely to have weighed on pricing in the to-be-reported quarter.
Extra Space Storage’s activities during the quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has moved a cent southward to $2.01 over the past month. However, it indicates 0.5% rise compared to the year-ago reported figure.
What Our Quantitative Model Predicts for EXROur proven model does not conclusively predict a surprise in terms of core FFO per share for Extra Space Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Extra Space Storage currently has an Earnings ESP of -1.73% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a LookHere are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
BXP, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +0.17% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties is slated to report quarterly numbers on April 29. VTR has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Cwm LLC lessened its stake in Extra Space Storage Inc (NYSE:EXR – Free Report) by 53.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,274 shares of the real estate investment trust’s stock after selling 22,263 shares during the period. Cwm LLC’s holdings in Extra Space Storage were worth $2,510,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other large investors also recently bought and sold shares of EXR. Vanguard Group Inc. increased its position in Extra Space Storage by 0.5% during the third quarter. Vanguard Group Inc. now owns 34,430,823 shares of the real estate investment trust’s stock worth $4,852,680,000 after buying an additional 161,171 shares during the period. State Street Corp boosted its stake in Extra Space Storage by 1.7% during the 3rd quarter. State Street Corp now owns 13,910,878 shares of the real estate investment trust’s stock worth $1,960,599,000 after purchasing an additional 230,697 shares during the period. Capital World Investors boosted its stake in Extra Space Storage by 0.5% during the 3rd quarter. Capital World Investors now owns 7,161,360 shares of the real estate investment trust’s stock worth $1,009,371,000 after purchasing an additional 33,622 shares during the period. Principal Financial Group Inc. boosted its stake in Extra Space Storage by 6.4% during the 3rd quarter. Principal Financial Group Inc. now owns 6,715,901 shares of the real estate investment trust’s stock worth $946,540,000 after purchasing an additional 406,146 shares during the period. Finally, Capital International Investors boosted its stake in Extra Space Storage by 1.0% during the 3rd quarter. Capital International Investors now owns 3,597,740 shares of the real estate investment trust’s stock worth $507,065,000 after purchasing an additional 35,752 shares during the period. Institutional investors and hedge funds own 99.11% of the company’s stock.
Extra Space Storage Trading Down 0.4% Shares of Extra Space Storage stock opened at $142.10 on Friday. Extra Space Storage Inc has a 52-week low of $125.71 and a 52-week high of $155.19. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.92. The company’s 50-day simple moving average is $140.92 and its 200-day simple moving average is $138.59. The firm has a market cap of $30.01 billion, a price-to-earnings ratio of 30.89, a price-to-earnings-growth ratio of 2.86 and a beta of 1.26.
Extra Space Storage (NYSE:EXR – Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The real estate investment trust reported $2.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.03 by $0.05. Extra Space Storage had a net margin of 28.84% and a return on equity of 6.79%. The business had revenue of $857.47 million for the quarter, compared to analyst estimates of $732.92 million. During the same period in the previous year, the business posted $2.03 earnings per share. The business’s revenue was up 4.3% compared to the same quarter last year. Extra Space Storage has set its FY 2026 guidance at 8.050-8.350 EPS. As a group, equities research analysts anticipate that Extra Space Storage Inc will post 8.24 earnings per share for the current year.
Extra Space Storage Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were issued a $1.62 dividend. This represents a $6.48 annualized dividend and a dividend yield of 4.6%. The ex-dividend date of this dividend was Monday, March 16th. Extra Space Storage’s dividend payout ratio (DPR) is currently 140.87%.
Insider Activity at Extra Space Storage In other news, CEO Joseph D. Margolis sold 7,500 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $142.08, for a total value of $1,065,600.00. Following the completion of the sale, the chief executive officer directly owned 66,495 shares of the company’s stock, valued at $9,447,609.60. This trade represents a 10.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.96% of the stock is owned by corporate insiders.
Wall Street Analyst Weigh In A number of brokerages recently weighed in on EXR. Mizuho increased their price target on shares of Extra Space Storage from $137.00 to $143.00 and gave the stock an “outperform” rating in a research note on Monday, January 12th. UBS Group dropped their price target on Extra Space Storage from $156.00 to $148.00 and set a “buy” rating on the stock in a research report on Thursday, January 8th. Bank of America cut Extra Space Storage from a “neutral” rating to an “underperform” rating and set a $143.00 price target on the stock. in a research report on Thursday, February 5th. Weiss Ratings restated a “hold (c)” rating on shares of Extra Space Storage in a research report on Tuesday. Finally, Wall Street Zen cut Extra Space Storage from a “hold” rating to a “sell” rating in a research report on Saturday. Six analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $143.67.
Get Our Latest Report on EXR
About Extra Space Storage (Free Report)
Extra Space Storage (NYSE: EXR) is a real estate investment trust that specializes in the ownership, development and operation of self-storage properties. The company provides storage solutions for residential and commercial customers, offering a range of unit sizes, climate-controlled units and specialized options such as vehicle and boat storage. Extra Space Storage markets itself as a customer-focused operator, with online rentals, contactless move-in options and ancillary retail products like packing supplies and insurance to support tenant needs.
Its business model combines property ownership with third-party management and development activities.
Recommended Stories Five stocks we like better than Extra Space Storage Want to see what other hedge funds are holding EXR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Extra Space Storage Inc (NYSE:EXR – Free Report).
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, /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500 index, announced operating results for the three months ended March 31, 2026.
Highlights for the three months ended March 31, 2026:
Achieved net income attributable to common stockholders of $1.14 per diluted share, representing a 10.9% decrease compared to the same period in the prior year, which included a gain from real estate assets sold in 2025. Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.97 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.04 per diluted share, representing a 2.0% increase compared to the same period in the prior year. Same-store revenue increased by 1.7% and same-store net operating income ("NOI") increased by 1.2% compared to the same period in the prior year. Reported ending same-store occupancy of 93.0% as of March 31, 2026, compared to 93.2% as of March 31, 2025. Acquired one operating store for $12.5 million. In conjunction with joint venture partners, completed the development of one store for a total cost of approximately $15.1 million, of which the Company invested $14.4 million. Added 84 stores (60 stores net) to the Company's third-party management platform. As of March 31, 2026, the Company managed 1,916 stores for third parties and 408 stores in unconsolidated joint ventures, for a total of 2,324 managed stores. Paid a quarterly dividend of $1.62 per share. Joe Margolis, CEO of the Company, stated: "We are off to a strong start to 2026, with Core FFO of $2.04 per share in the first quarter, up 2.0% year-over-year. Our portfolio is experiencing broad-based improvement with positive new and existing customer rate gains and industry leading occupancy, resulting in same-store revenue growth of 1.7%. Also, our external growth channels continue to perform well, with disciplined investments across acquisitions, bridge lending, and third-party management driving consistent returns."
FFO Per Share:
The following table (unaudited) outlines the Company's FFO and Core FFO for the three months ended March 31, 2026 and 2025. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
For the Three Months Ended March 31,
2026
2025
(per share)1
(per share)1
Net income attributable to common stockholders
$ 240,977
$ 1.14
$ 270,875
$ 1.28
Impact of the difference in weighted average number of shares – diluted2
(0.04)
(0.06)
Adjustments:
Real estate depreciation
170,895
0.77
159,170
0.72
Amortization of intangibles
3,723
0.02
11,079
0.05
Gain on real estate assets held for sale and sold, net
—
—
(35,761)
(0.16)
Unconsolidated joint venture real estate depreciation and amortization
7,607
0.03
8,689
0.04
Equity in earnings of unconsolidated joint venture gain on sale of a joint
venture interest
(207)
—
—
—
Income allocated to Operating Partnership and other noncontrolling
interests
11,443
0.05
14,050
0.06
FFO
$ 434,438
$ 1.97
$ 428,102
$ 1.93
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured
senior notes, net
12,555
0.05
11,313
0.05
Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit
3,917
0.02
4,531
0.02
CORE FFO
$ 450,910
$ 2.04
$ 443,946
$ 2.00
Weighted average number of shares – diluted3
220,933,115
221,329,035
(1)
Per share amounts may not recalculate due to rounding.
(2)
This adjustment is to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).
(3)
Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.
Operating Results and Same-Store Performance:
The following table (unaudited) outlines the Company's same-store performance for the three months ended March 31, 2026 and 2025 (amounts shown in thousands, except store count data)1:
For the Three Months Ended
March 31,
Percent
2026
2025
Change
Same-store property revenues2
Net rental income
$ 654,365
$ 642,993
1.8 %
Other income
24,244
24,556
(1.3) %
Total same-store revenues
$ 678,609
$ 667,549
1.7 %
Same-store operating expenses2
Payroll and benefits
$ 41,685
$ 41,072
1.5 %
Marketing
14,468
14,314
1.1 %
Office expense3
18,210
17,898
1.7 %
Property operating expense4
24,100
22,731
6.0 %
Repairs and maintenance
16,714
15,494
7.9 %
Property taxes
77,791
77,190
0.8 %
Insurance
8,902
7,928
12.3 %
Total same-store operating expenses
$ 201,870
$ 196,627
2.7 %
Same-store net operating income2
$ 476,739
$ 470,922
1.2 %
Same-store square foot occupancy as of quarter end
93.0 %
93.2 %
Average same-store square foot occupancy
92.7 %
93.1 %
Properties included in same-store5
1,870
1,870
(1)
A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income."
(2)
Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.
(3)
Includes general office expenses, computer, bank fees, and credit card merchant fees.
(4)
Includes utilities and miscellaneous other store expenses.
(5)
On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.
Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months ended March 31, 2026 and 2025 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Investment and Property Management Activity:
The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).
Closed/Completed through
March 31, 2026
Closed /Completed or
Scheduled to Close/Complete
in 2026
Total 2026
Wholly-Owned Investment1
Stores
Price
Stores
Price
Stores
Price
Operating Stores2
1
$ 12,500
3
$ 9,650
4
$ 22,150
Buyout of JV Partners' Interest in
Operating Stores
—
—
1
4,080
1
4,080
EXR Investment in Wholly-
Owned Stores
1
12,500
4
13,730
5
26,230
Joint Venture Investment1
EXR Investment in JV Acquisition of
Operating Stores
—
—
—
—
—
—
EXR Investment in JV Development
and C of O
1
14,378
3
42,370
4
56,748
EXR Investment in Joint
Ventures
1
14,378
3
42,370
4
56,748
Total EXR Investment
2
$ 26,878
7
$ 56,100
9
$ 82,978
(1)
The locations of certificate of occupancy ("C of O") and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.
Property Sales:
During the three months ended March 31, 2026, the Company sold one property which was previously held for sale and currently has four properties remaining as held for sale.
Bridge Loans:
During the three months ended March 31, 2026, the Company originated $5.5 million in bridge loans and sold two bridge loans for $30.8 million. Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $102.0 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2026. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Property Management:
As of March 31, 2026, the Company managed 1,916 stores for third-party owners and 408 stores owned in unconsolidated joint ventures, for a total of 2,324 stores under management. The Company is the largest self-storage management company in the United States.
Balance Sheet:
During the three months ended March 31, 2026, the Company repurchased 11,109 shares of common stock for $1.4 million at an average price of $129.80 per share using its stock repurchase program, and as of March 31, 2026, the Company had authorization to purchase up to $349.1 million under the program.
During the three months ended March 31, 2026, the Company did not issue any shares on its ATM program, and as of March 31, 2026, the Company had $800.0 million available for issuance.
As of March 31, 2026, the Company's commercial paper program had total capacity of $1.0 billion, with $850.0 million in outstanding issuances.
As of March 31, 2026, the Company's percentage of fixed-rate debt to total debt was 82.5%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 92.9%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.2% and 4.6%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.3 years. Full details related to the Company's debt schedule are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Dividends:
On March 31, 2026, the Company paid a first quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on March 16, 2026.
Outlook:
The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 2026.
Ranges for 2026
Annual Assumptions
Ranges for 2026
Annual Assumptions
Notes
(April 28, 2026)
(February 19, 2026)
Low
High
Low
High
Core FFO
$8.05
$8.35
$8.05
$8.35
Dilution per share from C of O
and value add acquisitions
$0.18
$0.18
$0.18
$0.18
Same-store revenue growth
(0.50) %
1.50 %
(0.50) %
1.50 %
Same-store pool of 1,870 stores
Same-store expense growth
2.00 %
3.50 %
2.00 %
3.50 %
Same-store pool of 1,870 stores
Same-store NOI growth
(2.25) %
1.25 %
(2.25) %
1.25 %
Same-store pool of 1,870 stores
Weighted average one-month
SOFR
3.65 %
3.65 %
3.46 %
3.46 %
Net tenant reinsurance income
$289,000,000
$292,000,000
$289,000,000
$292,000,000
Management fees and other
income
$140,000,000
$141,500,000
$138,000,000
$139,500,000
Interest income
$149,500,000
$151,000,000
$149,500,000
$151,000,000
Includes interest from bridge
loans and dividends from
NexPoint preferred investment
General and administrative
expenses
$190,500,000
$192,500,000
$190,500,000
$192,500,000
Includes non-cash
compensation
Equity in earnings of real
estate ventures
$63,500,000
$64,500,000
$63,500,000
$64,500,000
Includes dividends from
SmartStop preferred
investments
Interest expense
$592,000,000
$597,000,000
$590,000,000
$595,000,000
Excludes non-cash interest
expense shown below
Non-cash interest expense
related to amortization of
discount on unsecured senior
notes, net
$42,000,000
$43,000,000
$42,000,000
$43,000,000
Amortization of debt mark-to-
market; excluded from Core
FFO
Income Tax Expense
$47,000,000
$48,000,000
$47,000,000
$48,000,000
Taxes associated with the
Company's taxable REIT
subsidiary
Acquisitions
$200,000,000
$200,000,000
$200,000,000
$200,000,000
Includes wholly-owned
acquisitions and the Company's
investment in joint ventures
Bridge loans outstanding
$1,475,000,000
$1,475,000,000
$1,475,000,000
$1,475,000,000
Represents the Company's
average retained loan balances
for the year
Weighted average share count
221,100,000
221,100,000
221,100,000
221,100,000
Assumes redemption of all OP
units for common stock
(1)
A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."
FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.
Supplemental Financial Information:
Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.
Conference Call:
The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, April 29, 2026, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/970879752?pwd=s88EVPAR
A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on April 29, 2026.
Forward-Looking Statements:
Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," "outlook," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:
adverse changes in general economic conditions, the real estate industry and the markets in which we operate; potential liability for uninsured losses and environmental contamination; our ability to recover losses under our insurance policies; the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results; the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline; failure to close pending acquisitions and developments on expected terms, or at all; risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors; reductions in asset valuations and related impairment charges; our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results; impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results; economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan; our lack of sole decision-making authority with respect to our joint venture investments; disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow; availability of financing and capital, the levels of debt that we maintain and our credit ratings; changes in global financial markets, increases in interest rates and the impact of enacted and proposed U.S. tariffs on global economic conditions; the effect of recent or future changes to U.S. tax laws; and the failure to maintain our REIT status for U.S. federal income tax purposes. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
Definition of FFO:
FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.
For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.
Definition of Same-Store:
The Company's same-store pool for the periods presented consists of 1,870 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of March 31, 2026, the Company owned and/or operated 4,344 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 3.0 million units and approximately 335.6 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
Extra Space Storage Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
March 31, 2026
December 31, 2025
(Unaudited)
Assets:
Real estate assets, net
$ 24,926,765
$ 25,004,350
Real estate assets - operating lease right-of-use assets
737,606
732,176
Investments in unconsolidated real estate entities
1,069,602
1,066,783
Investments in debt securities and notes receivable
1,758,534
1,806,526
Cash and cash equivalents
138,986
138,920
Other assets, net
467,877
515,291
Total assets
$ 29,099,370
$ 29,264,046
Liabilities, Noncontrolling Interests and Equity:
Secured notes payable, net
$ 1,076,443
$ 1,079,565
Unsecured term loans, net
1,495,012
1,494,659
Unsecured senior notes, net
9,446,570
9,432,427
Revolving lines of credit and commercial paper
1,152,500
1,224,000
Operating lease liabilities
769,688
761,106
Cash distributions in unconsolidated real estate ventures
74,288
73,701
Accounts payable and accrued expenses
374,814
357,583
Other liabilities
497,553
516,969
Total liabilities
14,886,868
14,940,010
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued
or outstanding
—
—
Common stock, $0.01 par value, 500,000,000 shares authorized, 211,197,111
and 211,155,322 shares issued and outstanding at March 31, 2026 and
December 31, 2025, respectively
2,112
2,112
Additional paid-in capital
14,882,445
14,880,646
Accumulated other comprehensive income (loss)
314
(420)
Accumulated deficit
(1,552,391)
(1,449,172)
Total Extra Space Storage Inc. stockholders' equity
13,332,480
13,433,166
Noncontrolling interest represented by Preferred Operating Partnership units
47,827
53,827
Noncontrolling interests in Operating Partnership, net and other noncontrolling
interests
832,195
837,043
Total noncontrolling interests and equity
14,212,502
14,324,036
Total liabilities, noncontrolling interests and equity
$ 29,099,370
$ 29,264,046
Consolidated Statement of Operations for the Three Months Ended March 31, 2026 and 2025
(In thousands, except share and per share data) - Unaudited
For the Three Months Ended
March 31,
2026
2025
Revenues:
Property rental
$ 733,213
$ 704,380
Tenant reinsurance
89,119
84,712
Management fees and other income
33,695
30,905
Total revenues
856,027
819,997
Expenses:
Property operations
238,303
223,582
Tenant reinsurance
17,867
17,116
General and administrative
46,509
45,974
Depreciation and amortization
185,795
180,356
Total expenses
488,474
467,028
Gain on real estate assets held for sale and sold, net
—
35,761
Income from operations
367,553
388,730
Interest expense
(147,299)
(142,399)
Non-cash interest expense related to amortization of discount on unsecured senior
notes, net
(12,555)
(11,313)
Interest income
39,543
38,967
Income before equity in earnings and dividend income from unconsolidated real
estate entities and income tax expense
247,242
273,985
Equity in earnings and dividend income from unconsolidated real estate entities
15,760
19,931
Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint
venture interest
207
—
Income tax expense
(10,789)
(8,991)
Net income
252,420
284,925
Net income allocated to Preferred Operating Partnership noncontrolling interests
(673)
(724)
Net income allocated to Operating Partnership and other noncontrolling interests
(10,770)
(13,326)
Net income attributable to common stockholders
$ 240,977
$ 270,875
Earnings per common share
Basic
$ 1.14
$ 1.28
Diluted
$ 1.14
$ 1.28
Weighted average number of shares
Basic
210,896,947
211,850,618
Diluted
220,322,872
212,052,742
Cash dividends paid per common share
$ 1.62
$ 1.62
Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months Ended
March 31, 2026 and 2025 (In thousands) - Unaudited
For the Three Months Ended
March 31,
2026
2025
Net Income
$ 252,420
$ 284,925
Adjusted to exclude:
Gain on real estate assets held for sale and sold, net
—
(35,761)
Equity in earnings and dividend income from unconsolidated real
estate entities
(15,760)
(19,931)
Equity in earnings of unconsolidated real estate ventures - gain on sale
of a joint venture interest
(207)
—
Interest expense
147,299
142,399
Non-cash interest expense related to amortization of discount on
unsecured senior notes, net
12,555
11,313
Depreciation and amortization
185,795
180,356
Income tax expense
10,789
8,991
General and administrative
46,509
45,974
Management fees, other income and interest income
(73,238)
(69,872)
Net tenant insurance
(71,252)
(67,596)
Non same-store rental revenue
(54,604)
(36,831)
Non same-store operating expense
36,433
26,955
Total same-store net operating income
$ 476,739
$ 470,922
Same-store rental revenues
678,609
667,549
Same-store operating expenses
201,870
196,627
Same-store net operating income
$ 476,739
$ 470,922
Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per
Share — for the Year Ending December 31, 2026 - Unaudited
For the Year Ending
December 31, 2026
Low End
High End
Net income attributable to common stockholders per diluted share
$ 4.30
$ 4.60
Income allocated to noncontrolling interest - Preferred Operating
Partnership and Operating Partnership
0.22
0.22
Net income attributable to common stockholders for diluted computations
4.52
4.82
Adjustments:
Real estate depreciation
3.12
3.12
Amortization of intangibles
0.05
0.05
Unconsolidated joint venture real estate depreciation and amortization
0.13
0.13
Funds from operations attributable to common stockholders
7.82
8.12
Adjustments:
Non-cash interest expense related to amortization of discount on unsecured
senior notes, net
0.19
0.19
Amortization of other intangibles related to the Life Storage Merger, net of
tax benefit
0.04
0.04
Core funds from operations attributable to common stockholders
$ 8.05
$ 8.35
Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending
December 31, 2026 (In thousands) - Unaudited
For the Year Ending December 31, 2026
Low
High
Net Income
$ 975,500
$ 1,059,000
Adjusted to exclude:
Equity in earnings of unconsolidated joint ventures
(63,500)
(64,500)
Interest expense
597,000
592,000
Non-cash interest expense related to amortization of discount on
unsecured senior notes, net
43,000
42,000
Depreciation and amortization
738,500
738,500
Income tax expense
48,000
47,000
General and administrative
192,500
190,500
Management fees and other income
(140,000)
(141,500)
Interest income
(149,500)
(151,000)
Net tenant reinsurance income
(289,000)
(292,000)
Non same-store rental revenues
(221,000)
(222,000)
Non same-store operating expenses
145,000
144,500
Total same-store net operating income1
$ 1,876,500
$ 1,942,500
Same-store rental revenues1
2,691,000
2,745,000
Same-store operating expenses1
814,500
802,500
Total same-store net operating income1
$ 1,876,500
$ 1,942,500
(1)
Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2026 same-store pool of 1,870 stores. On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.
Extra Space Storage (EXR - Free Report) came out with quarterly funds from operations (FFO) of $2.04 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to FFO of $2 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +1.29%. A quarter ago, it was expected that this self-storage facility real estate investment trust would post FFO of $2.03 per share when it actually produced FFO of $2.08, delivering a surprise of +2.46%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Extra Space Storage, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $856.03 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.38%. This compares to year-ago revenues of $820 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Extra Space Storage shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Extra Space Storage?While Extra Space Storage has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Extra Space Storage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $2.07 on $865.38 million in revenues for the coming quarter and $8.24 on $3.44 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, SmartStop (SMA - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This real estate investment trust with a focus on self-storage facilities is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +17.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
SmartStop's revenues are expected to be $72.56 million, up 10.9% from the year-ago quarter.
Extra Space Storage (EXR - Free Report) reported $856.03 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 4.4%. EPS of $2.04 for the same period compares to $1.28 a year ago.
The reported revenue represents a surprise of +0.38% over the Zacks Consensus Estimate of $852.77 million. With the consensus EPS estimate being $2.01, the EPS surprise was +1.29%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Extra Space Storage performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Property rental: $733.21 million versus $726.66 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.1% change.Revenues- Management fees and other income: $33.7 million compared to the $33.21 million average estimate based on three analysts. The reported number represents a change of +9% year over year.Revenues- Tenant reinsurance: $89.12 million versus $89.55 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Same-store rental revenues: $678.61 million compared to the $659.72 million average estimate based on two analysts. The reported number represents a change of +2.9% year over year.Net income (loss) per common share - Diluted: $1.14 versus the three-analyst average estimate of $1.14.Net operating income- Same store properties: $476.74 million compared to the $439.21 million average estimate based on two analysts.Equity in earnings and dividend income from unconsolidated real estate entities: $15.76 million versus $16.77 million estimated by two analysts on average.View all Key Company Metrics for Extra Space Storage here>>>
Shares of Extra Space Storage have returned +8.8% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways EXR reported Q1 core FFO of $2.04, beating estimates and rising 2% year over year.Extra Space Storage posted 4.5% revenue growth and 1.2% same-store NOI gains.EXR expanded its platform, managing 2,324 stores while maintaining the 2026 FFO outlook. Extra Space Storage Inc. (EXR - Free Report) reported first-quarter 2026 core funds from operations (FFO) per share of $2.04, beating the Zacks Consensus Estimate of $2.01. The figure increased 2% year over year from $2.00.
Results reflected a year-over-year increase in same-store net operating income (NOI).
Quarterly revenues came in at $856 million, above the Zacks Consensus Estimate of $852.8 million. The top line increased 4.5% year over year.
EXR’s First Quarter in DetailSame-store revenues jumped 1.7% year over year to $678.6 million, while same-store operating expenses rose 2.7% to $201.9 million. As a result, same-store NOI improved 1.2% year over year to $476.7 million.
Same-store square-foot occupancy was 93% as of March 31, 2026, compared with 93.2% as of March 31, 2025.
EXR’s Portfolio ActivityDuring the quarter, Extra Space Storage acquired one operating store for $12.5 million. In partnership with joint venture partners, the company also completed the development of one store for a total cost of around $15.1 million, of which EXR invested $14.4 million.
The company added 84 stores, or 60 stores net, to its third-party management platform. As of March 31, 2026, EXR managed 1,916 stores for third parties and 408 stores in unconsolidated joint ventures for a total of 2,324 managed stores.
Balance Sheet Position of EXRExtra Space Storage exited the quarter with $139.0 million of cash and cash equivalents, roughly in line with $138.9 million as of Dec. 31, 2025.
As of March 31, 2026, EXR’s fixed-rate debt represented 82.5% of total debt. Net of variable-rate receivables, effective fixed-rate debt was 92.9% of total debt. The combined weighted average interest rate was 4.3%, with a weighted average maturity of about 4.3 years.
In the first quarter, the company did not issue any shares under its at-the-market program and had $800 million available for issuance as of March 31, 2026.
During the quarter, the company repurchased 11,109 shares for $1.4 million at an average price of $129.80 per share. As of March 31, 2026, it had $349.1 million remaining under its repurchase authorization.
EXR’s 2026 GuidanceExtra Space Storage maintained its 2026 core FFO outlook in the range of $8.05-$8.35 per share. The guidance assumes same-store revenue growth of negative 0.50% to 1.50%, same-store expense growth of 2.00%-3.50% and same-store NOI growth of negative 2.25% to 1.25%.
EXR’s Zacks RankExtra Space Storage currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings ReleasesWe now look forward to the earnings releases of other REITs like Federal Realty Investment Trust (FRT - Free Report) and OUTFRONT Media (OUT - Free Report) , slated to report on May 1 and May 7, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share stands at $1.82, which indicates 7.1% growth year over year. FRT currently has a Zacks Rank #2 (Buy).
The consensus estimate for OUTFRONT Media’s first-quarter 2026 FFO per share stands at 28 cents, which calls for significant growth year over year. OUT currently has a Zacks Rank #2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Q1: 2026-04-28 Earnings SummaryEPS of $1.14 beats by $0.04
|
Revenue of
$733.21M
(4.09% Y/Y)
beats by $5.50M
Extra Space Storage Inc. (EXR) Q1 2026 Earnings Call April 29, 2026 1:00 PM EDT
Company Participants
Jared Conley - Vice President of Financial Planning Analysis
Joseph Margolis - CEO & Director
Jeff Norman - Executive VP & CFO
Conference Call Participants
Michael Goldsmith - UBS Investment Bank, Research Division
Samir Khanal - BofA Securities, Research Division
Brendan Lynch - Barclays Bank PLC, Research Division
Ravi Vaidya - Mizuho Securities USA LLC, Research Division
Eric Wolfe - Citigroup Inc., Research Division
Viktor Fediv - Scotiabank Global Banking and Markets, Research Division
Juan Sanabria - BMO Capital Markets Equity Research
Michael Griffin - Evercore ISI Institutional Equities, Research Division
Ronald Kamdem - Morgan Stanley, Research Division
Todd Thomas - KeyBanc Capital Markets Inc., Research Division
Salil Mehta - Green Street Advisors, LLC, Research Division
Caitlin Burrows - Goldman Sachs Group, Inc., Research Division
Eric Luebchow - Wells Fargo Securities, LLC, Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to Extra Space Storage Inc. Q1 2026 Earnings Call. [Operator Instructions]
I will now hand the conference over to Jared Conley, Vice President of Investor Relations. Please go ahead.
Jared Conley
Vice President of Financial Planning Analysis
Thanks, Karen. Welcome to Extra Space Storage's First Quarter 2026 Earnings Call. In addition to our press release, we have furnished unaudited supplemental financial information on our website.
Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements are qualified by the cautionary statements contained in the company's latest filings with the SEC, which we encourage our listeners to review. Forward-looking statements represent management's estimates as of today, April
Extra Space Storage Inc (EXR) Q1 2026 Earnings Call Highlights: Strong Financial Performance Amid Competitive Market Extra Space Storage Inc (EXR) reports a 2% increase in core FFO and exceeds revenue projections, while navigating challenges in occupancy and acquisition markets. Summary
Core FFO: $2.04 per share, up 2% year-over-year.Same-Store Revenue Growth: 1.7%, exceeding internal projections.Same-Store Occupancy: 93%, compared to 93.2% in the prior year.Projected Acquisitions for 2026: $200 million, primarily in asset-light joint venture structures.Bridge Loan Program Balance: Approximately $1.5 billion in Q1 2026.Third-Party Managed Stores: Added 84 stores, net growth of 60 stores, total managed portfolio at 1,916 stores.Same-Store NOI Growth: Improved 110 basis points from 0.1% to 1.2%.Management Fee and Other Income Growth: Over 9% year-over-year.Net Tenant Insurance Growth: Over 5% year-over-year.Debt at Fixed Interest Rates: 83%, increasing to 93% on an effective basis.Weighted Average Interest Rate: 4.3%.Revolving Lines of Credit Capacity: Approximately $2 billion.Full Year 2026 Core FFO Guidance Range: $8.05 to $8.35 per share.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Extra Space Storage Inc EXR reported a 2% year-over-year increase in core FFO, reaching $2.04 per share, demonstrating strong financial performance.The company achieved positive same-store revenue growth of 1.7%, exceeding internal projections, indicating effective operational strategies.EXR's diversified external growth platform remains effective, with a projection of $200 million in total acquisitions for 2026, primarily through asset-light joint venture structures.The Bridge Loan Program maintained an average balance of approximately $1.5 billion, generating attractive interest income and expanding the management business.The third-party management platform added 84 stores in the quarter, with net growth of 60 stores, showcasing the value delivered through superior property performance and operational expertise. Negative Points Same-store occupancy slightly decreased to 93% from 93.2% in the prior year, indicating a minor decline in occupancy rates.Utilities and repairs and maintenance expenses ran higher than expected due to weather-related items, impacting overall expense control.New customer rate growth moderated from 5-6% in January and February to just over 1% in March, suggesting potential challenges in maintaining rate growth.The acquisition market remains competitive, with recent transactions priced at sub-5 initial cap rates, posing challenges for accretive acquisitions.The company faces uncertainties in the broader macroeconomic environment, including potential impacts from higher gas prices and inflation, which could affect future performance. Q & A Highlights Q: With positive move-in rates over the past year, does the moderation of these rates weigh on same-store revenue growth for the rest of the year?
A: Jeff Norman, CFO, explained that while new customer rates are important for driving same-store revenue growth, other revenue levers are also crucial. Although new customer rate growth moderated, occupancy improved, and the focus remains on driving total revenue rather than any specific lever.
Q: How would you characterize the current demand compared to last year as the leasing season begins?
A: Joseph Margolis, CEO, described demand as steady, with no significant improvement or degradation. The company's platform allows it to capture more than its share of market demand, maintaining high occupancy and rates.
Q: Can you provide insights on the competitive impact of PSA and NSA combining?
A: Joseph Margolis, CEO, noted that Extra Space Storage already competes with these stores and expects them to perform better under a unified platform. The company remains focused on improving its operations to stay competitive.
Q: What are your expectations for transaction volume and seller expectations in the market?
A: Joseph Margolis, CEO, mentioned that while there is market activity, recent transactions have been priced aggressively. The company maintains a modest acquisition guidance and focuses on accretive transactions, often through joint ventures.
Q: How is the same-store revenue range expected to perform for the full year, given the strong first quarter?
A: Jeff Norman, CFO, stated that while Q1 performance exceeded expectations, the company is cautious due to macroeconomic uncertainties. They plan to revisit guidance after the leasing season, despite positive momentum.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Extra Space Storage Inc. (the "Company") (NYSE: EXR) announced today that the Company's board of directors has declared a second quarter 2026 dividend of $1.62 per share on the common stock of the Company. The dividend is payable on June 30, 2026, to stockholders of record at the close of business on June 15, 2026.
About Extra Space Storage Inc.
Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self-managed real estate investment trust, and a member of the S&P 500. As of March 31, 2026, the Company owned and/or operated 4,344 self-storage properties, which comprise approximately 3.0 million units and approximately 335.6 million square feet of rentable storage space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
For more information, please visit www.extraspace.com.
The Stability CaseThe first clock most analysis reads is coverage — and EXR’s coverage reads steady. Core FFO of $2.04 per share against a $1.62 dividend leaves a visible cushion, and the company reaffirmed its $8.05–$8.35 full-year core FFO outlook unchanged from February. Same-store revenue rose 1.7% and same-store NOI rose 1.2%, both ahead of internal projections, with ending same-store occupancy at 93.0%.
For a self-storage REIT carrying a debt load in the low-$13 billion range, that combination — high effective fixed-rate mix, a 4.3% blended cost locked from a lower-rate window, and a maturity wall that is staggered rather than concentrated — is the buffer working as designed. The coupon is being paid by a cost structure that has not yet been forced to reprice.
Where Caution Is WarrantedThe caution is not in the buffer’s current width — it is in what the buffer is measured against. A 4.3% weighted-average rate is a legacy number. It reflects debt issued into a funding environment that no longer exists at that price. Each maturity that rolls is a step toward the current cost of capital, not a continuation of the old one.
What Would Shift The NarrativeThe narrative shifts if the maturity schedule stops being a slow drift and becomes a visible step. The relevant question is not whether EXR can refinance — an investment-grade storage REIT with bond-market access and $2 billion of revolver capacity can. The question is the spread at which it clears, and how much of the current 4.3% blended rate survives each refinancing event.
What I’d WatchThis is not a prediction — structural assessment.
Sources: Extra Space Storage Q1 2026 earnings release and 8-K (filed April 2026); EXR Q1 2026 supplemental financial information (Investor Relations); EXR Q1 2026 earnings call transcript (April 2026); Moody’s and S&P issuer ratings as disclosed in company filings.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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